Gold sets all-time high on concerns of weak dollar

14:12, October 08, 2009      

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Gold futures on the COMEX Division of the New York Mercantile Exchange hit a new record high on Wednesday amid concerns that dollar may depreciate continuously. Silver and platinum both ended higher.

The most active gold contract for December delivery rose 4.70 U.S. dollars, or 0.5 percent, to finish at 1044.40 dollars an ounce. It touched as high as 1049.70 dollars during the electric session on Wednesday morning, surpassing Tuesday's all-time high of 1045.

Dollar recovered from three day's decline after a report about ending the place of dollar in crude oil trading was denied by related countries. By the end of gold floor trading time, the dollar index, a gauge measuring the greenback's value against a basket of major currencies, gained 0.118 to 76.437 from 76.319 on late Tuesday.

However, investors still have weak confidence about the greenback, for the Federal Reserve pumped hundreds of billions of liquidation into the markets to stimulate the economy in the past one year, providing a potential environment for dollar depreciation as the interest rate keeps at a record low level near zero.

December silver was up 20.5 cents to at 17.50 dollars per ounce. January platinum rose 2.40 dollars to 1327.70 dollars an ounce.

Source: Xinhua
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