Gold hit a record high at $1,036.40 an ounce as the dollar dropped on a report that Gulf Arab states were considering abandoning the US currency for oil trade. The report was later denied.
Gold hit a record high at $1,036.40 an ounce as the dollar dropped on a report that Gulf Arab states were considering abandoning the US currency for oil trade. The report was later denied.
A positive technical picture for gold fuelled buying on the fund side, traders said. However, the weight of near-record long positions in New York gold futures still leaves the market vulnerable to correction.
Spot gold was bid at $1,032.05 an ounce at lunchtime against $1,016.65 late on Monday.
U.S. gold futures also hit an all-time high, with gold futures for December delivery on the COMEX division of the New York Mercantile Exchange hitting a peak of $1,038.00 an ounce. They were later up $16.10 at $1,033.90.
"Investors (and) funds keep buying as the technical side looks good," said senior Commerzbank trader Michael Kempinski. "Even without the weak U.S. dollar, gold is performing quite well."
Gold also hit six-month highs when priced in sterling and euros, breaking above 700 euros an ounce for the first time since early April.
Jeffrey Nichols, managing director, American Precious Metals Advisors, said: "Thanks to extremely expansionary monetary policy – and with a little help from ETF investors, central banks, and new or evolving markets – like China and India – gold will likely climb over the next several years."
