Gold rose to a record in New York and London as the dollar fell for a third day, spurring demand for the metal as a hedge against further weakness.
The Dollar Index, a six-currency gauge of the greenback’s performance, slipped as much as 0.3 percent to a 15-month low. Gold futures jumped 5.5 percent in the past month as the currency index lost 1.7 percent and as news last week of bullion purchases by the Indian and Sri Lankan governments raised speculation that other countries would follow suit.
“The dollar has been weakening,” said Bernard Sin, head of currency and metals trading at bullion refiner MKS Finance SA in Geneva. “The market is also concerned about central banks’ interest in buying gold. We would not be surprised to see the market testing $1,200” an ounce by the end of the year.
December gold futures climbed for an eighth session on the New York Mercantile Exchange’s Comex division, rising as much as $16.10, or 1.5 percent, to $1,118.60 an ounce. They were at $1,114.50 by 8:28 a.m. local time. Immediate-delivery bullion gained as much as 1.1 percent to $1,117.82 an ounce in London and last traded at $1,114.57.
The metal advanced to a record $1,114.75 an ounce in the morning “fixing” in London from $1,101.50 at yesterday’s afternoon fixing. Some mining companies use fixings to sell production. Spot prices are up 27 percent this year and heading for a ninth annual gain, the longest winning streak since at least 1948.
11-11-2009, 06:52 AM
Gold surges to record $1,118.60 an ounce
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