The Gold Price Rise
Gold futures prices surged to the highest level of U.S. $ 1,342.60 per ounce, amid a weakening dollar, triggering an increase in demand for the precious metal as an alternative investment.
The dollar plummeted to its lowest level since January against six other major currencies. Federal Reserve Chairman Ben S. Bernanke declared yesterday that the U.S. central bank will buy more debt to shore up the economy. Meanwhile, Bank of Japan pledged to maintain its benchmark interest rate at the level of almost 0%.
“When the government was busy pouring money, gold is actually able to survive. The U.S. can not shy away from quantitative easing. The dollar was low, while the gold just the opposite,” said Matthew Zeman, metals trader at LaSalle Futures Group in Chicago.
Gold futures for December delivery rose U.S. $ 23.50, 1.8%, to U.S. $ 1,340.30 at 1:41 pm on the Comex in New York. Gold for delivery in the near future to strengthen to the level of U.S. $ 1,341.28.
Silver futures for December delivery rose 70.1 cents, or 3.2% to U.S. $ 22.737 an ounce on the Comex. On this day, the price was in the position of U.S. $ 22.79 which is the highest level since September 1980.
Platinum contract for January delivery rose U.S. $ 28.60 or 1.7%, to U.S. $ 1,700.70 an ounce on the New York Mercantile Exchange. Palladium futures for December delivery jumped U.S. $ 16.90, 3%, to U.S. $ 578.20 per ounce.