May 11, 2002	Saturday	Safar 27, 1423

LONDON, May 10: Gold prices edged towards their highest price in more than two years on Friday, as doubts over the strength of a US economic recovery and jitters over the Middle East proved gold as a valuable asset in uncertain times.

Gold closed in Europe at $310.70/311.20 a troy ounce, up from the previous New York close of $309.35/309.85 to post a year-on-year gain of 15 per cent.

“Political tension and financial undercurrents continue to lend a positive tone to the market and technical analysts remain favourably disposed to the charts,” the industry-backed World Gold Council said in a market commentary.

Bullion soared to $313.65 an ounce on May 7, its strongest level since February, 2000 as investors scrambled out of the dollar and brittle equity markets and sought a safe haven for their cash, amid heightened tension in the Middle East.

This crowned a winning streak that has taken the precious metal 18 per cent higher since the start of this year and lifted a market which was at 20-year lows just two years ago.

Investors who have avoided the precious metals arena for years have returned to join in this year’s free-for-all in gold futures, bullion, options and long-neglected gold mining shares.—Reuters