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Summary Gold has hit a high for the year on hopes that Spain may request for help from European countries.
Gold has hit a high for the year on speculation that Spain may be working on a request for financial help from other European countries.December gold rose $7.80 to finish at $1,778 per ounce. Earlier Friday, it hit $1,790 per ounce, which topped the previous 2012 high, set in late February.Analysts speculated that Spain is working on an economic reform plan that will include a request for bailout funding from Europe.The countrys borrowing costs have dropped sharply since the European Central Bank said recently it will buy unlimited amounts of government bonds to help countries with heavy debt loads. Those borrowing costs probably will rise again if Spain doesnt request a bailout soon, analysts said.In the U.S., the Federal Reserve also has put a plan in place to encourage economic growth.Such economic stimulus programmes continue to benefit gold prices, said Phillip Streible, a senior commodities broker at RJ OBrien.Investors buy gold as a hedge against inflation and volatility in currencies. Gold is priced in dollars but can be converted into any currency.
