Frank Tang and Amanda Cooper
Monday, November 8, 2010
NEW YORK/LONDON – Gold powered to an all-time high above US$1,400 an ounce Monday, despite a bounce in the dollar, as investors sought an inflation hedge from the Federal Reserve’s massive bond-buying program.
Gold has risen almost 6% since just before the Federal Reserve detailed its plans last Wednesday to buy $600-billion worth of Treasuries to revive the economy.
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Palladium rose 3% to break above US$700 an ounce for the first time since April 2001, and silver also gained 3% to its third consecutive 30-year high on the back of speculative buying after gold’s midday rally.
“As long as (investors) feel like there is no other recourse except buying precious metals, gold is going to to keep going up,” said Miguel Perez-Santalla, vice president of sales at Heraeus Precious Metals Management.
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