Gold futures on the COMEX Division of the New York Merc charged North to another record high Wednesday as the USD slid South, ready to assault the Key level of US$1,200 oz, Silver and Platinum also rallied. The most active Gold contract for December delivery rose US$21.20, or 2% to finish that day at the all time high of US$1,187oz. The USD slid to a new 15 month low as investors preferred high-risk currencies on Bullish US economic reports, as well as the expectations that the US Federal Reserve will keep the Key interest rate at a record low level near zero for some time to come Weighed by strong economic data, the USD index, a gauge that measures the Greenback’s value against the other major currencies, slie almost 1% to 74.445 during the morning session, hitting the weakest level since August 2008. By the end of Gold floor trading time, the index stood at 74.51. The rate against Euro also saw a lowest point of US$1.5095 in 15 months.
A weak USD usually pushes Gold higher as investors opt to purchase the yellow metal as a hedge against its depreciation.
Central banks’ Gold purchase from the International Monetary Fund provided additional support to the yellow metal.The IMF announced Wednesday the sale of 10 metric toness of Gold to the Central Bank of Sri Lanka. This action is a indication that a correction is unlikely in here.
Dec Silver was up 31.3 cents to US$18.768 oz and January Platinum rose US$35.70 to close at US$1,479.50 oz.
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