Gold hovers near record highs as dollar dips further
Thursday, 7 October 2010
SINGAPORE, Oct 6 (Commodity Online): Gold extended overnight gains to hit new record in Asian trade Wednesday as the dollar dropped further while Bank of Japan's rates cut still supporting the precious metal.
Gold for immediate delivery was seen trading at $1342.85 an ounce at 1.00 pm Singapore time while US Gold for December delivery was at $1,347.70 an ounce in electronic trading on Globex.
Analysts said the precious metal is likely to climb further during the day on further dips in dollar and market anticipation on more quantitative easing from the US Fed.
The dollar was stuck near eight-month lows against the euro Wednesday and was losing ground against the yen after shedding all the gains it made in the previous session following easing by the Bank of Japan.
On Tuesday, the Bank of Japan voted unanimously to cut its policy interest-rate range to between zero and 0.1 per cent and pledged to maintain its easy policy until prices stabilise.
Meanwehile, spot silver rose to a fresh 30-year high of $22.95 an ounce, before easing to $22.82.
Holdings in the iShares Silver Trust, the world's largest silver-backed exchange-traded fund, rose 94.32 tons to a new all-time high of 9,877.20 tons by Oct 5.
Platinum group metals rose along with gold. Platinum hit $1,705 an ounce, highest since mid-May, before easing to $1,697.5. Palladium rose 0.6 per cent to $578 an ounce.
Gold for immediate delivery was seen trading at $1342.85 an ounce at 1.00 pm Singapore time while US Gold for December delivery was at $1,347.70 an ounce in electronic trading on Globex.
Analysts said the precious metal is likely to climb further during the day on further dips in dollar and market anticipation on more quantitative easing from the US Fed.
The dollar was stuck near eight-month lows against the euro Wednesday and was losing ground against the yen after shedding all the gains it made in the previous session following easing by the Bank of Japan.
On Tuesday, the Bank of Japan voted unanimously to cut its policy interest-rate range to between zero and 0.1 per cent and pledged to maintain its easy policy until prices stabilise.
Meanwehile, spot silver rose to a fresh 30-year high of $22.95 an ounce, before easing to $22.82.
Holdings in the iShares Silver Trust, the world's largest silver-backed exchange-traded fund, rose 94.32 tons to a new all-time high of 9,877.20 tons by Oct 5.
Platinum group metals rose along with gold. Platinum hit $1,705 an ounce, highest since mid-May, before easing to $1,697.5. Palladium rose 0.6 per cent to $578 an ounce.