Gold price hits five-months high

In the wake of sovereign debt crisis in Europe and tensions in Korean peninsula,gold price rising.
Spot gold gained 0.8% to $1,377.10 a troy ounce  even as dollar rallied hard. Denominated in Euros,gold price jumped 2.7% to Euro 1,030.03 an ounce within the reach of all the time high of Euro1,050 touched in June. Gold coins and bars registered strong demand in europe leading to around 30% sales rise from the rate in November. An analyst at HSBC New York suggested that Eurozone debt crisis abating could not be visualised.
In other markets, agricultural commodities and metal enjoyed  a small bounce. ICE march row sugar rose 1.1% to 27.63cents a pound.Copper in 3 months was 0.9% hogher at $8,224 a tonne.Losses in cotton snowballed as traders showed meagre interest in taking delivery next month.ICE DecemberCotton fell 10.90 cents to $1.11 per pound accelerating a reversal from its exchange record above $1.50 on Nove-9.Cotton has come under pressure as china has taken steps to curb inflationary pressures.China's two cotton textile mils have lowered procurement prices putting pressues on prices.