Gold hits historic high, breaks $1313 in Asia
Thursday, 30 September 2010
SINGAPORE, Sept 29 (Commodity Online): Gold created yet another record Wednesday as it crossed the $1313 an ounce mark on expectations of a Fed move to boost US economy.
Gold for immediate delivery was seen trading at $1311.59 an ounce at 12.30 pm Singapore time after hitting as high as $1313.50 an ounce in early trade.
Analysts said the US Fed is likely preparing a fresh round of quantitative easing measures to announce at the end of its November 2-3 meeting.
The precious yellow metal was ably supported by an increase in holdings on the exchange-traded fund amid economic uncertainty, they added.
The bullion hit a lifetime high, its 10th record in 12 sessions, as the dollar dropped against a basket of currencies on expectations the Federal Reserve would take new measures to shore up the economy.
Silver also surged to a 30-year high as ETF holdings jumped to another record, palladium rose to a five-month high to track higher base metals prices, while a firm yuan raised hopes of more buying from gold consumers in China.
London silver fix price reached $25 in September 1980, according to The Silver Institute, a US-based industrial group. Silver's main sources of demand are for use in industrial applications such as semi-conductors and jewelry.
The world's largest silver-backed exchange-traded fund, the iShares Silver Trust, said its holdings rose to a record of 9,756.04 tonnes by Sept 28 from 9,613.02 tonnes on Sept 24.
The dollar extended its losses against a basket of currencies to hit an eight-month low Wednesday, hurt by recent market speculation the Fed may embark on a second round of quantitative easing later this year.
On Tuesday, the most active gold contract for December delivery rose $9.7, or 0.7 per cent, to finish at a record settlement of $1,308. 3 per ounce.
December silver surged 23.6 cents, or 1.1 per cent, to $21.707, the price earlier touched a fresh 30-year high of $21.775 an ounce. October platinum climbed 5.6 dollars, or 0.3 per cent, to $1,635.7 per ounce.
Gold for immediate delivery was seen trading at $1311.59 an ounce at 12.30 pm Singapore time after hitting as high as $1313.50 an ounce in early trade.
Analysts said the US Fed is likely preparing a fresh round of quantitative easing measures to announce at the end of its November 2-3 meeting.
The precious yellow metal was ably supported by an increase in holdings on the exchange-traded fund amid economic uncertainty, they added.
The bullion hit a lifetime high, its 10th record in 12 sessions, as the dollar dropped against a basket of currencies on expectations the Federal Reserve would take new measures to shore up the economy.
Silver also surged to a 30-year high as ETF holdings jumped to another record, palladium rose to a five-month high to track higher base metals prices, while a firm yuan raised hopes of more buying from gold consumers in China.
London silver fix price reached $25 in September 1980, according to The Silver Institute, a US-based industrial group. Silver's main sources of demand are for use in industrial applications such as semi-conductors and jewelry.
The world's largest silver-backed exchange-traded fund, the iShares Silver Trust, said its holdings rose to a record of 9,756.04 tonnes by Sept 28 from 9,613.02 tonnes on Sept 24.
The dollar extended its losses against a basket of currencies to hit an eight-month low Wednesday, hurt by recent market speculation the Fed may embark on a second round of quantitative easing later this year.
On Tuesday, the most active gold contract for December delivery rose $9.7, or 0.7 per cent, to finish at a record settlement of $1,308. 3 per ounce.
December silver surged 23.6 cents, or 1.1 per cent, to $21.707, the price earlier touched a fresh 30-year high of $21.775 an ounce. October platinum climbed 5.6 dollars, or 0.3 per cent, to $1,635.7 per ounce.