Gold keeps up rally as silver hits 30-year high
Tuesday, 12 October 2010
SINGAPORE, Oct 11 (Commodity Online): Gold prices extended gains in Asian trade Monday as the dollar continued its southern journey while the silver hit a 30-year high.
Gold for immediate delivery was seen trading at $1355.61 an ounce at 1.00 pm Singapore time while spot silver rose to a 30-year high of $23.65 an ounce, before easing to $23.39.
US gold futures for December delivery were up 0.6 per cent at $1,353.9 an ounce on the comex division of Nymex.
The dollar slumped against the euro after dropping last week to the lowest level since January. Continuous weakness in the US dollar also lent support to bullion.
The dollar slid to 15-year lows versus the yen Monday on the soft jobs data, while the IMF and G7 meetings produced nothing to avert a cycle of competitive depreciation.
The dollar fell after a larger-than-expected cut in US jobs last week increased speculation the Federal Reserve will widen government-debt purchases to bolster the economy. Bullion typically moves in the opposite direction to the US currency.
Spot silver reached a 30-year high and gold was firm Monday after disappointing US payrolls data underpinned hopes of more stimulus from the Federal Reserve, spurring interest in precious metals.
Demand for gold as a haven from weakening currencies has helped boost investment in exchange-traded products.
Global holdings gained about 1.1 metric tons to 2,084.76 metric tons on Oct 8, according to data from 10 providers, after reaching a record 2,097.01 tons on Sept 30.
Platinum was little changed at $1,706.50 an ounce, while palladium advanced as much as 0.7 per cent to $591.25 an ounce after reaching a nine-year high of $604 last week.
Gold for immediate delivery was seen trading at $1355.61 an ounce at 1.00 pm Singapore time while spot silver rose to a 30-year high of $23.65 an ounce, before easing to $23.39.
US gold futures for December delivery were up 0.6 per cent at $1,353.9 an ounce on the comex division of Nymex.
The dollar slumped against the euro after dropping last week to the lowest level since January. Continuous weakness in the US dollar also lent support to bullion.
The dollar slid to 15-year lows versus the yen Monday on the soft jobs data, while the IMF and G7 meetings produced nothing to avert a cycle of competitive depreciation.
The dollar fell after a larger-than-expected cut in US jobs last week increased speculation the Federal Reserve will widen government-debt purchases to bolster the economy. Bullion typically moves in the opposite direction to the US currency.
Spot silver reached a 30-year high and gold was firm Monday after disappointing US payrolls data underpinned hopes of more stimulus from the Federal Reserve, spurring interest in precious metals.
Demand for gold as a haven from weakening currencies has helped boost investment in exchange-traded products.
Global holdings gained about 1.1 metric tons to 2,084.76 metric tons on Oct 8, according to data from 10 providers, after reaching a record 2,097.01 tons on Sept 30.
Platinum was little changed at $1,706.50 an ounce, while palladium advanced as much as 0.7 per cent to $591.25 an ounce after reaching a nine-year high of $604 last week.