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Gold Closes Above 1,310 Dollars As U.S Currency Slips
Sep 30,2010 10:43CST
data analysis
Source:SMM

CHICAGO, Sept. 29 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile edged higher and settled atop 1,310 U.S. dollars per ounce for the first time on Wednesday after choppy session, as dollar fell for the fourth consecutive trading day. Silver rose to a fresh 30-year peak and platinum touched a four-month high.

The most active gold contract for December delivery added 2 dollars, or 0.2 percent, to finish at a record settlement of 1,310. 3 dollars per ounce, and the price touched an all-time high of 1, 314.8 dollars per ounce during overnight session.

The greenback hit a fresh five month low against the euro on Wednesday and extended slide against most other currencies, as the weak economic data underscored the belief that Federal Reserve might embark on a second round of quantitative easing (QE) to boost the sluggish economy that would add to the dollar's woes.

The weaker dollar helped dollar-dominated bullion to shrug off some mid-morning weakness and closed just below its fresh all-time high hit during the electronic session.

Meanwhile, the increasing buying in India, the largest gold consumer in the world, also lent support to the bullion, as stronger rupee has made gold cheaper in rupee terms. The soaring gold price has led to a slowdown in sales ahead of festive and wedding season in India.

December silver surged 24.5 cents, or 1.1 percent, to 21.952 dollars. January platinum climbed 15.9 dollars, or 1 percent, to 1, 656.6 dollars per ounce.
 

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