Gold price volatility surges in first quarter: WGC
By Polya Lesova, MarketWatch
Last Update: 4:51 PM ET Apr 22, 2008
NEW YORK (MarketWatch) — Volatility in gold prices soared to a quarterly peak in
the first quarter of this year, when the precious metal surged to an all-time
high over $1,000 an ounce, the World Gold Council (WGC) said in a report Tuesday.
Gold price volatility rose to a quarterly peak of 28% on March 20, up from 19% at
the end of the fourth quarter of 2007, according to the latest Gold Investment
Digest of WGC, an industry group funded by gold mining companies.
In comparison, the volatility of the S&P 500 index (SPX) increased to 29%, while
that of silver and palladium jumped to 70% in late March.
“The ongoing credit crisis and increased market volatility in the first quarter
caused investors to seek safe-haven investments, pushing the price of gold to a
new all-time high,” said Natalie Dempster, investment research manager at WGC, in
a statement.
“Although the gold price did not escape the volatility of the markets entirely,
it did remain less volatile than other asset classes,” she said.
After breaking out through a series of all-time highs early this year, gold
peaked at over $1,020 an ounce in mid-March before sliding back near $900
recently.
On Tuesday, gold for May delivery closed at $925.20 an ounce on the New York
Mercantile Exchange.
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