Gold hits fresh record, $1,174

Published: 24/11/2009 at 12:03 AM
Online news: Breakingnews

Gold prices soared to a record 1,174 dollars an ounce here on Monday as a sliding US currency and worries about a possible spike to inflation increased demand for the "safe-haven" metal, traders said.

Gold prices soared to a record 1,172 dollars an ounce in London as a sliding US currency and worries about a possible spike to inflation increased demand for the 'safe-haven' metal.

Gold hit exactly 1,174 dollars an ounce in late trading on the London Bullion Market. It later pulled back slightly to stand at 1,170.32 dollars.

"Gold reached new highs as the dollar continued its decline," said ODL Markets analysts in a note to clients.

The dollar slid against the euro Monday on concerns that the Federal Reserve may keep emergency stimulus measures in place for a while longer, traders said. Comments by a US Federal Reserve official that he would prefer to keep the central bank's asset-buying programme active beyond its current cut-off date pushed the dollar lower, analysts said.

Federal Reserve Bank of St. Louis President James Bullard said an extension of the programme, widely considered a negative factor for the US currency, would give more flexibility to US policymakers.

"Central bank rhetoric provided fresh incentive" to push the dollar lower, said Jane Foley, analyst at online trading firm Forex.com.

"Gold prices printed another fresh high on the back of dollar weakness with Bullard's comments promoting the discussion of medium-term inflation potential, though economic data continues to indicate a absence of price pressures," Foley added.

About the author

: Writer: AFP News agency; Position: Agence France-Presse

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mike

Discussion 2 : 24/11/2009 at 09:49 AM2
to Pointman discussion 1>
The overall wealth is not depending on state assets. Private gold assets of Americans are not high. India has the biggest gold assets (mostly privately owned) but on a capita basis it's neither India nor America that has the biggest the biggest gold assets.
But after all the wealth of a country is not depending on physical assets but depending on how much the people of a country can invent. That said America is just in the middle. But as the US dollar is still the most important currency it only can drop until it reaches it fair value.
Pointman #2

Discussion 1 : 24/11/2009 at 08:50 AM1
I've been saying for years, the price of Gold can go so high, the USA, could wipe out its debt overnight. Although the U.S. Dollar is declining, the overall, wealth of the USA, is increasing based on the fact, the USA, holds the world's most Gold reserves. If it waw like it was years ago, when the U.S. Dollar was backed by Gold, the Dollar would now be increasing in value. I still believe, the U.S. Dollar is the currency to buy for guaranteed, investment.

mike

Discussion 2 : 24/11/2009 at 09:49 AM2

to Pointman discussion 1>
The overall wealth is not depending on state assets. Private gold assets of Americans are not high. India has the biggest gold assets (mostly privately owned) but on a capita basis it's neither India nor America that has the biggest the biggest gold assets.
But after all the wealth of a country is not depending on physical assets but depending on how much the people of a country can invent. That said America is just in the middle. But as the US dollar is still the most important currency it only can drop until it reaches it fair value.

Pointman #2

Discussion 1 : 24/11/2009 at 08:50 AM1

I've been saying for years, the price of Gold can go so high, the USA, could wipe out its debt overnight. Although the U.S. Dollar is declining, the overall, wealth of the USA, is increasing based on the fact, the USA, holds the world's most Gold reserves. If it waw like it was years ago, when the U.S. Dollar was backed by Gold, the Dollar would now be increasing in value. I still believe, the U.S. Dollar is the currency to buy for guaranteed, investment.

Gold hits fresh record, $1,174