Gold hits second record this week
Published 17/09/2010 | 05:00
GOLD rose to a record high for the second time this week as a slumping dollar spurred demand for the precious metal as a hedge against financial turmoil.
Meanwhile, silver climbed to its highest price since March 2008.
Gold futures climbed to $1,279.50 (€978.40) an ounce as the dollar fell to a five-week low against the euro. Holdings of gold in exchange-traded products are up 16pc this year as central banks keep interest rates at record lows.
"Gold is the place to be," said Lannie Cohen, president of Capitol Commodity Services in Indianapolis. "Investors are concerned that all the money that central banks around the world are now printing is out of control."
Prices surpassed the previous all-time high of $1,276.50 set on September 14. Bullion for immediate delivery in London rose to a record $1,278.02.
The metal is heading for its 10th consecutive annual gain, the longest winning streak since at least 1920. Prices also reached all-time highs in euros, sterling and Swiss francs in June.
"Gold is rapidly becoming the currency of choice," Cohen said. He expects futures to rally to $1,600 next year as the greenback continues to weaken. (Bloomberg)