Another big sell off in world stock markets sent investors and traders scrambling into the gold market.
There are growing concerns about the collective health of the major world economies. Gold prices have risen around 15% the past six weeks.
April Comex gold was last up $54.00 at $1,248.60 an ounce.
March Comex silver was last up $0.523 at $15.81 an ounce.
There was keen worldwide investor and trader risk aversion Thursday as most world stock markets suffered sharp losses.
Falling crude oil prices, worries about the European financial system and weak overall world economic growth prospects are combining to spook the world marketplace.
The Stoxx Europe 600 index was down nearly 4% Thursday.
Hong Kong’s Hang Seng index was also down around 4% on the day.
China and Japan markets were closed Thursday for holidays.
The Japanese yen has soared against the U.S. dollar on safe-haven demand from market participants in the Asian region.
U.S. stock indexes were sharply lower in afternoon trading Thursday.
Market watchers closely scrutinized Fed Chair Janet Yellen’s testimony on the U.S. economy before a U.S. Senate committee Thursday.
Yellen mentioned that negative interest rates in the U.S. cannot be ruled out, which further fueled the gold market bulls. Her remarks to a U.S. House committee Wednesday were at least partly blamed on selling pressure in world stock markets overnight. Now, many are doubting the Fed will be able to raise U.S. interest rates this year, as had been its intention until the recent turmoil in world markets.
In overnight news, Sweden’s central bank cut its main interest rate even farther, to minus 0.5% from minus 0.35%. The move was not expected and added some anxiety to the world marketplace.
