Like as usual, the yellow metal has played its full role of safe haven.

Paris, March 2nd, 2011

Like as usual, the yellow metal has played its full role of safe haven, then the situation currently prevailing in the Arab world urges investors to turn back to the riskiest assets March 1st, in the evening (Paris time)   an ounce of gold was worth 1.430,25 dollars on the spot market, after to be even flight up to 1.432,57 dollars during the day. It has thus exceeded its all-time record for December 7, date at which she exchanged 1.431,25 $. The course is closely correlated to the oil prices, which reached these time the same price that march 1st 2008. Some analysts compare the rise in gold in January 1980 following the second oil shock, with the current outbreak. Gold had then reached $ 850 an ounce, or the equivalent of today’s 2400 dollars, an observation which allows to suggest that prices could still easily advance.

Vix up, Oil above $100 per bbl, Gold Oz at $ 1430: once again, Gold has proved a reliable safe haven. Over and above a predictable rising trend for the year to come, the situation currently prevailing in the Arab World urges investors to shun some of the riskiest assets and consider reweighting their allocation for Gold. On March the 1st, an ounce of gold was worth $ 1,430.25 spot, after reaching a high of $ 1,432.57 during the day, thereby breaking its recent all-time record of $ 1,431.25 from the 7th of December. The evolution of Gold prices are closely correlated to the swings in oil prices. And at $ 100 to $ 110, they are back to the levels last seen in March, 2008. Some analysts compare the current outbreak of Gold prices with the surge witnessed in January 1980 following the second oil shock: Gold prices then reached $ 850 an ounce, or the equivalent of $ 2400 in today’s terms, a simple comparison which provides another evidence showing that Gold prices could keep going up. $ 2000 to $ 2500 is our next target range…

T.IMBERT, TD