Gold hits another new record!
LONDON, England - November 9, 2009 - Gold hit a record high above $1,110 an ounce in Europe on Monday as the dollar index .DXY slid 1% on expectations U.S. interest rates will remain low, boosting interest in the metal as an alternative asset.
Spot gold reached a peak of $1,110.85 an ounce, and was bid at $1,109.50 an ounce at 1:20 p.m., against $1,096.30 late in New York on Friday.
The precious metal is extending last week's near 5% gains, when fund buying took it to record highs after India's central bank bought 200 tonnes of gold from the International Monetary Fund and the dollar weakened further. Deutsche Bank trader Michael Blumenroth said some inflation fears are starting to be felt, while the weak dollar remains the key driver of the market. "People are expecting more weakness there," he said.
"In general, the rally looks healthy," he added. "Gold feels comfortable with four digits now."
Spot gold reached a peak of $1,110.85 an ounce, and was bid at $1,109.50 an ounce at 1:20 p.m., against $1,096.30 late in New York on Friday.
The precious metal is extending last week's near 5% gains, when fund buying took it to record highs after India's central bank bought 200 tonnes of gold from the International Monetary Fund and the dollar weakened further. Deutsche Bank trader Michael Blumenroth said some inflation fears are starting to be felt, while the weak dollar remains the key driver of the market. "People are expecting more weakness there," he said.
"In general, the rally looks healthy," he added. "Gold feels comfortable with four digits now."
