Gold futures continued their march into record territory for a second day Wednesday, with some traders and analysts expecting prices to soon breach $1,700 an ounce as worries mount about the health of the global economy. Recent economic data from China, Europe and the US suggest slowing growth, and sovereign debt worries rattled bond markets this week in Italy and Spain. The most actively traded gold contract, for December delivery, climbed $21.80, or 1.3 percent, to settle at $1,666.30 a troy ounce on the Comex division of the New York Mercantile Exchange. Futures rose as high as $1,675.90 an ounce, a record intraday high for a most-active contract. UBS Wednesday lifted its one-month gold price forecast to $1,725, up from $1,575, reflecting concern over global growth, the chance of further US monetary easing, and continued central bank buying. Sentiment in the gold market also received a boost from the news that South Korea's central bank added to its gold holdings for the first time in 13 years, as central banks, particularly those in export-focused economies, reduce their dependence on the US dollar. Russia, Mexico and Thailand have all announced substantial purchases this year, and a Bank of Thailand governor said Wednesday that the bank was considering further gold purchases. Global stocks also ended lower as traders rushed to put their capital in the safest investments — high quality bonds and gold. In the GCC countries, all markets ended lower, except Abu Dhabi where the benchmark index rose by 0.2 percent on its third day of gains. The Saudi Stock Exchange fell for the second day straight Wednesday, closing off 0.30 percent at 6,423.87 points, after a sharp rise at the start of the week. SABIC declined by a quarter percent to SR103.75. Dubai index declined 0.6 percent to 1,527 points. Qatar benchmark fell 0.4 percent to 8,398 points. Kuwait measure eased 0.1 percent to 6,068 points. Bahrain measure eased 0.02 percent to 1,284 points. Oman index slipped 0.9 percent to 5,758 points. Across Europe, Britain's FTSE 100 was down 1.1 percent; Germany's DAX and France's CAC40 fell 0.7 and 0.6 percent respectively. On Wall Street, the Dow Jones industrial average was up 35.42 points, or 0.30 percent, at 11,902.04. The Standard & Poor's 500 Index was up 5.98 points, or 0.48 percent, at 1,260.03. The Nasdaq Composite Index was up 25.16 points, or 0.94 percent, at 2,694.40. Asian stocks fell sharply as well. Japan's Nikkei 225 index slid 2.1 percent to 9,642.86 and Hong Kong's Hang Seng shed 1.9 percent to 21,995.75. South Korea's benchmark Kospi index tumbled 2.7 percent to 2,064.35. Stock markets in Australia, Taiwan, India, Singapore, the Philippines and Indonesia also dropped. Oil prices dived, too. New York's light sweet crude for delivery in September, dived to $91.93, down $1.86 from Tuesday. Brent North Sea crude slumped to $113.23 per barrel, down $3.23.
