The price of gold shot up above 370 dollars an ounce on the key London bullion market on Tuesday (18 September).
The price of gold shot up above 370 dollars an ounce on the key London bullion market on Tuesday (18 September). The price represented a rise of more than fifteen dollars on the previous day's closing rate. Dealers said the upsurge came in anticipation of a large gold auction by the United States Treasury later in the day. For two hours in the morning trading was so frantic it was virtually halted, with dealers finding it almost impossible to obtain a quote in the market. At one point the price reached more than 380 dollars an ounce before slipping back.
SYNOPSIS: The London gold rush involved many ??? buyers chasing a small volume of available gold. Dealers said there were few sellers on the market. But in the retail market at Hatton Garden there continued to be a wide variety of gold jewellery available, for a price. Dealers said the United States Treasury sale of 750,000 ounces where strong bidding was expected helped drive up the price. they also believed the rush for gold reflected lack of confidence in paper currencies weakened by inflation and recession.
London dealer Leonard Gance says the most popular form of gold for small investors is the South African Krugerrand, coins containing one ounce of fine gold.