December contract up more than $74 from the end of October
By Myra P. Saefong, MarketWatch
TOKYO (MarketWatch) -- Gold prices continued to climb in electronic trading on Globex Thursday, with December gold reaching a contract high of more than $1,122 an ounce on bets that demand for the precious metal will remain strong against an extended backdrop of low interest rates.
As of Wednesday, December gold has posted gains in every New York trading session so far this month, up $74.20 from the closing level of $1,040.40 on Oct. 30.
"Gold is moving higher yet again as the comments out of various Fed [U.S. Federal Reserve] officials and other leaders are clear evidence that rate increases are a long way off indeed," said Kevin Kerr, president of Kerr Trading International.
Gold for December delivery climbed as high as $1,122.30 an ounce on Globex by Thursday afternoon in Tokyo -- a fresh record high for the contract. It was last up $7.20 at $1,121.80.
The contract finished at a record of $1,114.60, up $12.10, or 1%, on Wednesday at the New York Mercantile Exchange.
The thinly traded front-month November contract finished at $1,114 an ounce in New York Wednesday.
Looking ahead, "gold is likely headed to $1,250 and has the potential for a violent move higher should China suddenly purchase IMF (International Monetary Fund) gold," said Kerr.
