Gold futures climbed above the US$1,210-an-ounce level in electronic trading on Globex by Wednesday afternoon in Asia
Relentless safe haven buying and persistent weakness in the dollar sent gold prices to another record high on Wednesday in Asian trading, taking the precious metal's advance since January to 37%. Gold hit a new record for the second straight day.
Gold futures climbed above the US$1,210-an-ounce level in electronic trading on Globex by Wednesday afternoon in Asia, as mixed moves for the US dollar failed to allay concerns of weakness in the greenback.
The front-month December futures contract has posted gains in all but two trading sessions since the beginning of last month. The contract climbed as high as US$1,210.50 an ounce on Globex in Tokyo's afternoon trade. It later eased slightly but was still up US$10.10, or 0.8%, at US$1,209.20.
Gold for immediate delivery gained 1.1% to US$1,209.32 an ounce after rising as high as US$1,210.59.
Copper and aluminum climbed yesterday as a US manufacturing report showed demand for goods would continue to expand. The Institute for Supply Management’s (ISM) new orders index increased to 60.3 from 58.5, and a measure of export demand climbed to a 15-month high.
Stocks across the globe surged after European finance ministers said that risks from Dubai were limited as the emirate started talks to restructure US$26bn of debt.
The dollar and yen weakened against major counterparts amid higher demand for riskier assets.
Crude oil for January delivery gained US$1.09 to US$78.37 a barrel in New York yesterday, the highest settlement since Nov. 18. Crude is up 76% this year.
