THE instability of stock markets led to sharp rises in the price of gold last week as investors took to buying precious metals as a safe haven from the financial turmoil seen across the globe.
New York saw the gold price rise dramatically on September 18 when the dollar fix got to over $900 before dropping down to $837.5 by the end of the day.
This was a tremendous spike that came in the immediate aftermath of news that the American government was going to take on ‘toxic loans’ and would ban traders taking short positions on shares in banks and insurance companies.
Brighton based precious medals dealer Michael Bloomstein said he had never witnessed such a rapid movement of prices in so short a period.
By Alex Capon