Friday, October 1, 2010
Gold prices rallied to record highs above $1,320 an ounce on Friday as the dollar weakened further on soft U.S. manufacturing data, fueling interest in the precious metal as an alternative asset.
U.S. gold futures for December delivery last rose toward $1,319 an ounce.
Gold’s run to record highs is likely to maintain its current momentum for the rest of 2010, with a snap poll of analysts conducted by Reuters this week finding two out of three see prices above $1,350 by year-end.
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Eleven out of the 21 analysts polled say they expected the precious metal to be trading between $1,350 and $1,400 an ounce by Dec. 31, while two respondents saw prices higher still.
“Continued concerns over the global economy and particularly the U.S. should keep interest in gold high,” said Michael Widmer, an analyst at Bank of America-Merrill Lynch in London.
This article was posted: Friday, October 1, 2010 at 8:52 am