Gold Posts New All-Time High as U.S. Dollar Decline Continues

Comex gold prices are trading solidly higher and hit another new all-time record high of $1,330.00 an ounce in December futures as of this writing Tuesday morning. More weakness in the U.S. dollar and generally stronger commodity futures prices Tuesday morning are supporting buying interest in the yellow metal. December Comex gold last traded up $11.60 an ounce at $1,328.40. Spot gold was last quoted up $12.30 at $1,327.75.

The U.S. dollar index hit another fresh 8.5-month low Tuesday as the Euro currency strengthened following some upbeat manufacturing data coming out of the European Union. Many investors believe a fresh round of quantitative easing of U.S. monetary policy is in the offing, and that continues to boost the gold market bulls and keep selling pressure on the greenback. The Bank of Japan and the Reserve Bank of Australia central banks overnight announced they are adopting more stimulative monetary policies, which only bolsters notions of a U.S. monetary policy easing coming soon.

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MF Global Anticipates Gold Advance To $1,350/Oz

22 September 2010, 9:13 a.m.
By Allen Sykora
Of Kitco News
http://www.kitco.com/

(Kitco News)-MF Global looks for the gold market to maintain its upward momentum, with prices perhaps advancing toward $1,350 an ounce over the next few weeks. “Support will come from yesterday’s FOMC statement, miner hedge unwinds, and technical momentum,” MF Global says. “The market is overbought, but has been so for more than a month now with no effect.”

By Allen Sykora of Kitco News; asykora@kitco.com

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