Gold shot to a record high again today as the dollar slipped to its lowest in more than a year and analysts predict further gains for the precious metal on the US unit's persistent weakness.
Spot gold rallied to $1,115.85 an ounce and was at $1,114.65 an ounce by 8.30am Irish time versus $1,105.30 an ounce last quoted late in New York yesterday.
US gold futures for December delivery rose 1.2 per cent to $1,115.7 an ounce after hitting an all-time high of $1,116.3 an ounce.
The dollar slid to its lowest against a basket of currencies in 15 months today, continuing its decline on the view
US interest rates will stay low for a long time.
US investment bank Goldman Sachs said gold could rise to record highs in a range from $1,150 to $1,200 an ounce, driven
by falling real interest rates and renewed buying interest by central banks.
India's recent purchase of 200 tonnes of gold from the International Monetary Fund has also given gold support as it
has kept the metal out of the market.
World Bank president Robert Zoellick said today that the dollar's role as a reserve currency is intact, but the
United States cannot take it for granted and needs to tackle its huge fiscal deficit.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1,114.443 tonnes as of November 10th, unchanged from the previous business day and at a level last seen in July.
Spot silver was at $17.52 per ounce, compared with $17.32 last quoted in New York late yesterday.
Spot platinum was at $1,366.50 per ounce, up from $1,349.50, while palladium was at $336.25 versus $331.50.
Reuters