Gold heads for 1,100 dollars, extending all-time high on weak greenback 2009-11-05 06:12:23   Print

    CHICAGO, Nov. 4 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange headed for 1,100 U.S. dollars on Wednesday, setting a new record high as dollar weakened. Silver and platinum both rose.

    The most active gold contract for December delivery gained 2.40 dollars, or 0.2 percent, to finish at 1,087.30 dollars an ounce, but it rallied to a new record high of 1098.50 during the electronic session after the contract closed in pit trading.

    A weaker dollar was considered the main factor which fueled the yellow metal to a new peak. By the end of gold floor trading time, the dollar index, a gauge measuring the greenback's value against a basket of major currencies, dropped 0.455 to 76.015, raising gold's demand of hedge and haven.

    Tuesday's news that India's central bank bought 200 tons of gold from the International Monetary Fund made investors more optimistic about gold's demand, helping the precious metal's rally.

    On Wednesday afternoon, the Federal Reserve kept its benchmark interest rate unchanged at a record low of near zero, weighing much on the dollar and providing additional support in gold's after-hours trading.

    December silver was up 22.5 cents to 17.405 dollars per ounce. January platinum rose 13.10 dollars to 1369.30 dollars an ounce.

Special Report:  Global Financial Crisis

Editor: Yan
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