Gold races through $1,200 an ounce, again
Gold futures cracked a "key" technical barrier and pushed past the $1,200-an-ounce level Tuesday, with its highest close in nearly two weeks, after investors worried about worrying about Portugal's downgrade.
Gold for August delivery rose $14.80, or 1.2%, to $1,213.50 an ounce. Other metals followed gold higher, with silver finishing 34 cents, or 1.9%, ahead at $18.26 an ounce.
Moody's Investors Service cut Portugal's sovereign-debt ratings down from A1 from Aa2, upsetting the recent revival in investor confidence over the European economies.
Copper finished modestly higher advancing 0.3%, or 1 cent, to $3.02 a pound.
Gold finished at its highest since June 30. The contract slid nearly 1% on Monday. For silver, Tuesday's finish was also the highest in nearly two weeks.
October platinum added $20.10, or 1.3%, to $1,535.40 an ounce, while September palladium advanced $15, or 3.3%, to $469 an ounce.
US investors pushed equity prices higher overnight as the Dow Jones industrial average surged more than 145 points and the major indexes were up well over 1 percent.
Alcoa led the charge as it reported strong quarterly earnings. Aloca is watched closely by investors because its varied customer base provides a snapshot of a broad range of other industries. It is also a component of the Dow Jones industrial average.
Alcoa said global consumption of aluminum will grow this year by more than it had forecast just three months ago. There have been concerns that the global economic recovery will end as many European nations face mounting government debt problems and high unemployment slows growth in the U.S.
The Commerce Department reported Tuesday that the U.S. trade deficit increased to its widest level in 18 months as an increase in exports was outpaced by rising imports. A jump in both imports and exports is a sign that the economy is growing.
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