Gold Extends Record Above $1,226
Source: MarketWatch, Moming Zhou & Polya Lesova (12/3/09)
"Gold continues to defy gravity and for good reasons. . ."
Gold for December delivery rose as high as $1,226.40 an ounce in overnight electronic trading. It ended up $5.40, or 0.4%, at $1,217.40 an ounce on the Comex division of the New York Mercantile Exchange.
Gold futures have soared 38% this year and have made gains in 17 of the past 20 weeks. They advanced in all but two trading sessions in November.
"Gold continues to defy gravity and for good reasons: The shift out of fiat currency such as the dollar is happening at a swifter pace than most imagined it would," said Kevin Kerr, president of Kerr Trading International.
In currencies, the dollar fell after European Central Bank President Jean-Claude Trichet confirmed the bank's tender offer this month will be the last as it gradually phases out special liquidity measures.
The dollar (DXY), which tracks the performance of the greenback against a basket of other major currencies, edged down 0.1% to 74.614.
The index earlier rose, pushing gold prices lower, after data showed service sectors in the U.S. economy contracted in November.
The dollar and gold prices have had a strong inverse relationship in recent trading.