Monday the 9th of November has seen the gold prices test yet new highs, with equity markets looking strong and investor sentiment up gold is proving to be a winner.
The gold price is at $1109 an ounce at 10:58am on Monday the 9th November. 1109.55 is the record high touched at 10:10am GMT.
Analysts are pointing to dollar weakness against the euro, boosting gold's appeal as an alternative asset.
Equities are also up this morning on the demand for risk with the FTSE 100 up 1.19%
The strong gold price left miners in strong demand with Rio Tinto adding 73p, or 2.5 per cent, to £29.90, BHP Billiton jumping 39.5p, or 2.32 per cent, to £17.43 and Kazakhmys advancing 24p, or 1.98 per cent, to £12.36.3.
Commentators at ODL Markets however point out that gold is a winner regardless of what equity markets are doing:
"Gold climbed to record highs as the US dollar fell against some of the majors. In addition to dollar weakness, concerns about the health of the global economy sees investors move monies in to the perceived ‘safe haven’.
"The highly traded December contract traded over the $1100 level following release of the non farms on Friday. With unemployment exceeding 10% in the US, it would appear that investors are still not convinced that we are out of the woods just yet."
Oil Prices
Oil prices traded higher following news that Hurricane Ida threatened oil installations in New Mexico.
Ida is the first major Atlantic hurricane of the year, and is scheduled to make landfall on Tuesday.
This has helped reverse Fridays slump following the release of the non-farms. A dismal jobs report heightened concerns that the global economic recovery may stall, thus hitting consumption.
