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| Gold jumps to record in global markets on weak dollar |
| Bloomberg/PTI / Singapore Nov 09, 2009, 13:19 IST |
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Gold in London, New York and Shanghai surged to records as the weakening dollar prompted investors to increase bullion holdings as a store of value.
At Singapore, gold for immediate delivery shot up $USD 10.01 to reach an all-time high of $1,105.11 an ounce as expectations for record low borrowing costs in the US drove down the dollar, gold buying by the Reserve Bank of India last week raised speculation that other countries will follow suit.
Gold for December-delivery on the Comex division of the New York Mercantile Exchange added as much as 0.9 per cent to $1,105.40 an ounce, surpassing its November 6 peak of $1,101.90.
The precious metal for delivery in December in Shanghai gained 0.9 per cent from the previous settlement price to 241.19 yuan a gram ($1,099 an ounce), the highest price since futures started trading in January 2008.
At the MCX in futures trade in India, the metal for delivery in December surged to record high of Rs 16,692 per ten gram.
The precious metal rose to a record in global markets as a weaker dollar spurred demand for the metal as a hedge and as central bank purchases buoyed confidence in the outlook for demand.
Gold also climbed last week after the Reserve Bank of India bought 200 metric tons from the International Monetary Fund.
The Dollar Index, which measures the greenback’s performance against six major currencies, also declined.
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