Gold Hits Record High at $1,040.15 on Weak Dollar
Source: CNBC (10/6/09)
"We'll see further highs over the next 3–6 months."
Spot gold was bid at $1,038.95 an ounce against $1,016.65 late in New York on Monday.
"We'll see further highs over the next 3–6 months. I think people are prepared to be short of dollar and long of other currencies, including gold," said Michael Jansen, analyst at JP Morgan.
U.S. gold futures climbed to an all-time high on the back of a weakened dollar, surpassing the previous record set in March 2008.
Its high of $1,040 bested the previous record of $1,033.90 for COMEX gold on a second-month continuation basis.
The dollar fell after a media report, later denied, that Gulf Arab states were in talks to abandon the dollar in oil trade in favor of a currency basket.
A small seasonal increase in demand for physical gold is also supporting prices, traders said.
"The ability of gold to climb back over $1,000 is, in our opinion, impressive," HSBC analyst Jim Steel said in a note. "If the dollar remains subject to gradual erosion and commodity prices remain firm.... then gold is likely to remain well-bid and may challenge all-time highs."