Gold jumps to 18-month high as dollar slides!
NEW YORK - September 17, 2009 - U.S. gold futures seesawed around unchanged on Thursday after reaching a high dating back to July 2008, dipping as the dollar recovered, traders said.
Gold prices earlier hit 18-month highs for a second consecutive session as the dollar slid to one-year lows versus the euro, fueling buying of the precious metal as an alternative asset.
Spot gold rose. U.S. gold futures for December delivery on the COMEX division of the New York Mercantile Exchange rose $2.40 to $1,022.40 an ounce.
Industrial precious metals platinum, palladium and silver also rose, benefitting from a better outlook for industrial production.
Platinum and palladium hit their best levels since September 2008, while silver reached a 13-month peak.
Commerzbank analyst Eugen Weinberg said as long as dollar weakness persisted, gold's run higher was likely to continue.
"It is realistic that we will see (the record high) in the course of the next couple of days, and should that fall, probably even more speculative money will flow into the market," he said. "Momentum is very strong and positive."
Gold prices earlier hit 18-month highs for a second consecutive session as the dollar slid to one-year lows versus the euro, fueling buying of the precious metal as an alternative asset.
Spot gold rose. U.S. gold futures for December delivery on the COMEX division of the New York Mercantile Exchange rose $2.40 to $1,022.40 an ounce.
Industrial precious metals platinum, palladium and silver also rose, benefitting from a better outlook for industrial production.
Platinum and palladium hit their best levels since September 2008, while silver reached a 13-month peak.
Commerzbank analyst Eugen Weinberg said as long as dollar weakness persisted, gold's run higher was likely to continue.
"It is realistic that we will see (the record high) in the course of the next couple of days, and should that fall, probably even more speculative money will flow into the market," he said. "Momentum is very strong and positive."
