SINGAPORE (Commodity Online): Gold consolidated its position as a safe haven asset and advanced further in Asian trade Tuesday after fears of another recession in three years hit markets.
Spot gold rose as high as $1669 an ounce in early trade before eased to $1665.41 an ounce at 12.30 p.m Singapore time while US Gold for December delivery was seen trading at $1668.02 after hitting a high of $1674.4 an ounce in early trade.
Analysts said concerns over recession spread fast among investors prompting them to dump equities and turned to bullion as safe haven which lifted gold prices.
They added that bargain-hunting after recent strong selling pressure and safe-haven buying interest amid the ongoing European Union sovereign debt crisis boosted the yellow metal Monday.
Credit Suisse raised its 2012 gold price forecast to $1,850 from its prior forecast of $1,540, saying the clear beneficiary of the uncertainty and dislocations in financial markets has further upside with the crises set to continue.
On Monday, US gold closed at $1,652.80 an ounce while spot gold ended at $1,651.50. December Comex silver closed at $30.66 an ounce.
