Bullion metals end their losing streak

Gold and silver rises to highest levels in a week

Bullion metals were back at their winning spree on Tuesday, 30 August 2011 surging more than 2% to end at their highest level in a week as investors questioned the rebound for U.S. equities and had lingering concerns about the state of the global economy. Worse than expected economic data boosted bullion prices again asa asafe haven for alternative investment.



Gold for December delivery rose $38.20, or 2.1%, to $1,829.80 an ounce on the Comex division of the New York Mercantile Exchange. September silver rose 85 cents, or 2.1%, to $41.40 per ounce. That was silver's highest finish in a week.

US stocks extended their early morning slide in response to an abysmal Consumer Confidence Index for August. The Index had been generally expected to ease to 52 from just above 59, but slumped to 44.5, which is the worst reading since April 2009. It is suspected that the worse-than-expected reading was the result of stock market volatility, slow job growth, and concerns about the pace of the overall economic recovery.

In addition, at the August meeting, the FOMC said it thought that short-term interest rates would remain near zero until mid-2013. That boosted gold, which went on to hit a string of records earlier in the month.

In the currency market, the U.S. dollar pared gains against major currencies after minutes from the Federal Reserve's policy meeting. The dollar held earlier gains after a report showed U.S. home prices unexpectedly rose in June from May.