April 11, 2011
Gold jumped to a record high for a fifth straight trading day on Monday as the prospect of more declines in the U.S. dollar drove investors into the precious metal, with record exchange traded fund holdings helping silver to its highest in more than three decades.
Heightened inflationary threats despite interest hikes by China and the European Central Bank boosted gold’s safe haven appeal, while silver also attracted buying from investors looking for a cheaper alternative to bullion. The gold-to-silver ratio was at a 28-year low around 35.
Spot gold added $1.35 to $1,474.05 an ounce by 0539 GMT, having risen as high as $1,476.21 after the euro jumped to a 15-month high against the U.S. dollar.
“I think there is a good chance that gold could hit $1,500 an ounce within this quarter. And perhaps even higher if we see the weakness in the dollar persist and the Federal Reserve continues their relatively easy monetary policy,” said Ong Yi Ling, investment analyst at Phillip Futures in Singapore.
This article was posted: Monday, April 11, 2011 at 4:46 am