Gold hits new record high for third consecutive day!
LONDON, England - October 8, 2009 - Gold hit new record highs for a third day on Thursday, as funds moved in and the dollar weakened further.
The spot price, which closed at $1,044 an ounce on Wednesday, rose above $1,055, helped by dollar weakness.
"It's pretty much all a fund and investor driven rally," said Michael Kempinski, a trader at Commerzbank, told Reuters. "Those guys like to buy at the highs and have the power to push it through."
He said gold prices could hit $1,100 an ounce as private investors moved following the increased interest.
Using technical analysis, Barclays Capital predicted on Wednesday that the gold price could rise as high as $1,500/oz. The bank is targeting $1,050/oz initially, followed by $1,120/oz. It advised holding long positions in the precious metal.
The gold price is still significantly below its inflation-adjusted high. The price hit $850/oz in January 1980, which represents a price today of about $2,300/oz when adjusted for inflation.
Gold has risen about 20% this year, helped by the dollar's weakness and inflation worries following massive stimulus packages and bailouts by the governments around the world last year.
The dollar fell against the pound to $1.6041 in London in morning trade.
The spot price, which closed at $1,044 an ounce on Wednesday, rose above $1,055, helped by dollar weakness.
"It's pretty much all a fund and investor driven rally," said Michael Kempinski, a trader at Commerzbank, told Reuters. "Those guys like to buy at the highs and have the power to push it through."
He said gold prices could hit $1,100 an ounce as private investors moved following the increased interest.
Using technical analysis, Barclays Capital predicted on Wednesday that the gold price could rise as high as $1,500/oz. The bank is targeting $1,050/oz initially, followed by $1,120/oz. It advised holding long positions in the precious metal.
The gold price is still significantly below its inflation-adjusted high. The price hit $850/oz in January 1980, which represents a price today of about $2,300/oz when adjusted for inflation.
Gold has risen about 20% this year, helped by the dollar's weakness and inflation worries following massive stimulus packages and bailouts by the governments around the world last year.
The dollar fell against the pound to $1.6041 in London in morning trade.
