Nov 4, 2010
Gold rose in London as the dollar fell after the Federal Reserve said it will purchase more debt, boosting demand for an alternative investment. Silver climbed to a 30-year high and palladium reached a nine-year high.
The dollar slipped to a nine-month low versus the euro after the Fed yesterday said it will buy an additional $600 billion of Treasuries through June to boost the U.S. economy. Gold, which usually moves inversely to the greenback, is trading 1.9 percent below a record $1,387.35 set on Oct. 14.
A weakening dollar “is what’s helping gold,” said Jesper Dannesboe, a senior commodity strategist at Societe Generale SA in London. “The quantitative-easing announcement was broadly in line with expectations. The euro-dollar rally could actually help gold revisit the highs again.”
Immediate-delivery bullion added $12.32, or 0.9 percent, to $1,360.88 an ounce at 9:23 a.m. in London. The metal for December delivery was 1.7 percent higher at $1,360.50 on the Comex in New York. Futures reached a record $1,388.10 on Oct. 14.
This article was posted: Thursday, November 4, 2010 at 4:51 am