Gold soars to record high near $1,000

LONDON - Gold yesterday roared to a record high and held within sight of $1,000 an ounce, as the dollar struck an all-time low and oil stood around $105 a barrel.

By (Reuters)

Published: Fri 7 Mar 2008, 9:56 AM

Last updated: Sun 5 Apr 2015, 1:17 PM

Silver struck a 27-year high above $21 on strong speculative buying, platinum traded below an historical peak and US gold futures held just near record highs around $995 an ounce.

Spot gold jumped as high as $991.90 an ounce and was quoted at $984.40/985.70 at 1603GMT, up from an earlier low of $959.45, but below the $985.70/986.50 late on Wednesday.

“It’s an investor-driven story, with the investor demand coming from US dollar weakness. I can’t see the trend abating anytime soon, with all the drivers of gold remaining in place,” said Daniel Hynes, metals strategist at Merrill Lynch.

“Also inflation concerns seem to be rising on a daily basis and that certainly bodes well for gold, which in the past has been a hedge against such concerns.

“$1,000 is a foregone conclusion now.”

Gold has gained nearly 20 per cent in 2008 as funds, speculators and investors pour money into precious metals on expectation of further interest rate cuts in the United States and record-high oil, which lift its safe-haven appeal.

“The ongoing weakness in the dollar and fresh highs for oil look set to entice further anti-recessionary/inflationary hedging towards gold and will ultimately push the metals higher,” said in a note.

“The big question now is how much resistance lies ahead of $1,000,” it added.

Gold futures for April delivery on the COMEX division of the New York Mercantile Exchange rose $1.3 to $989.70 an ounce, near its record high of $995.20 hit on Wednesday.

Gold has also jumped in other currencies, which is often seen as a bullish sign. The metal quoted in euros was at 644 euros an ounce, just below this week’s record high of 649.85 euros. It was last at 497.32 sterling, versus Monday’s record of 497.55 sterling.

Platinum fell to $2,225/2,235 an ounce after rising to $2,272, against $2,240/2,247 in New York on Wednesday.

Silver hit an intraday high of $21.20 an ounce, up from $20.61/20.66 late in New York. Spot palladium fell to $546/555 an ounce from $552/556 .

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