Gold futures advance to record high against weakening dollar

11:20, October 06, 2010      

Email | Print | Subscribe | Comments | Forum 

Gold futures on the COMEX Division of the New York Mercantile Exchange on Tuesday continued the record-making process, finishing at a new closing high, as dollar fell to its lowest level since January. The silver also resumed hiking and pushed the 30-year record to a new high.

The most active gold contract for December delivery gained 23.5 dollars, or 1.8 percent, to close at 1,338.9 dollars per ounce.

The greenback fell to the lowest level since January against a basket of six currencies. The central bank of Japan Monday announced that it would pump more funds into the struggling economy and keep interest rates virtually at zero, which incurred concerns that the U.S. Fed would also take the same measures and thus, further weighed on the dollar.

A gold trader noted that monetary easing in Japan reinforces gold's role as a store of value and predicted that the gold price may reach 1,500 dollars by the end of the year and 2,500 dollars in the next year.

The gold price has gained 20 percent so far this year, heading for the 10th straight annual gain and the longest rally since at least 1920. The metal has far outperformed global equities and Treasuries, prompting record investment in gold.

However, the consecutive hiking in gold price also triggered concerns over market correction. A senior market watch noted that he is suspicious of buying more gold here at the current levels, and expected that the gold prices might well fall 80-100 dollars in the next several weeks.

Underpinned by the weakening dollar, the silver and platinum also joined the rising line. December silver climbed 70.1 cents, or 3.2 percent, to 22.737 dollars. January platinum added 28.6 dollars, or 1.7 percent, to 1,700.7 dollars per ounce.

Source: Xinhua


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion