Gold rose to a record settlement price on speculation that a global economic recovery will stoke inflation. Silver jumped to a 13-month high as the dollar’s slump boosted demand for metals as alternative investments.
The worst US recession since the 1930s has probably ended, Federal Reserve Chairman Ben Bernanke said yesterday. The dollar slid to its lowest level in almost a year against a basket of six major currencies as the economic outlook reduced demand for the greenback as a haven. Gold futures were 1.3 per cent below a record $US1033.90 an ounce set in March 2008.
"The dollar is being attacked on all sides," Miguel Perez-Santalla, a sales vice president at Heraeus Precious Metals Management in New York, said in an e-mail. "The commodities are gaining on their already powerful momentum. It is all technical and investment buying."
Gold futures for December delivery advanced $US13.90, or 1.4 per cent, to $US1020.20 an ounce on the Comex division of the New York Mercantile Exchange. Earlier, the price reached $US1023.30, the highest since March 17, when the metal climbed to the record.
Bullion for immediate delivery climbed 0.9 per cent to $US1016.52 in New York time. The Reuters/Jefferies CRB Index of 19 raw materials has gained 15 per cent this year after tumbling 36 per cent in 2008.
Inflation expectations are rising after central banks cut borrowing costs and the Group of 20 nations pledged about $US12 trillion to spur their economies. Precious metals have soared this year as investors sought to shield their wealth against inflation and a declining US dollar.
