Gold Rises Above $1,010/oz. as Dollar's Slide Resumes
Source: MarketWatch, Moming Zhou (9/22/09)
"Gold is sustaining the $1,000 mark on the back of robust investment demand and a renewed decline in the U.S. dollar."
The dollar renewed its slide, falling to a fresh one-year low against the euro as the Federal Reserve began its two-day policy meeting Tuesday. Meanwhile, holdings in SPDR Gold Trust, the biggest gold ETF, rose more than 15 metric tons to the highest level in more than two months.
Gold for September delivery gained $14.90, or 1.5%, to $1,018.60 an ounce on the Comex division of the New York Mercantile Exchange. On Monday, the contract briefly fell below the $1,000 mark for the first time in a week. It had risen to $1,019.80 last Wednesday, an all-time high for a front-month contract.
More actively traded, the December gold contract rose $12.80, or 1.3%, to $1,017.70. It had topped $1,020 an ounce on Wednesday.
The London afternoon fixing, a global gold benchmark, stood at $1,014 an ounce Tuesday, up 1.7% from the previous day.
"Gold is sustaining the $1,000 mark on the back of robust investment demand and a renewed decline in the U.S. dollar," said analysts at Commerzbank in a note.
In gold ETFs, holdings in SPDR Gold Trust rose 15.25 metric tons on Monday to stand at 1,101.73 metric tons, the highest level since July 13.
Monday's increase "is encouraging as investors become acclimatized to four-digit prices," said James Moore, analyst at TheBullionDesk.com.
In other metals, December silver rose 40 cents, or 2.4%, to $17.28 an ounce as October platinum declined $14.70, or 1.1%, to $1,336.90 an ounce and December palladium lost $5.75, or 1.9%, to $304.90 an ounce.
December copper rallied 7.95 cents, or 2.8%, to $2.885 a pound.