Gold futures traded above $425 an ounce for the first time in more than 15 years in New York on Monday, starting the new year as it ended 2003 - rallying as investors diversified out of the crumbling dollar.
All precious metals surged on the first trading day of 2004, but only gold is considered a form of currency and thus a hard alternative to the sliding greenback.
It extended last year's 20 percent gain as the dollar hit a new low against the soaring euro and fell to its cheapest level against the yen in three years.
At the COMEX division of the New York Mercantile Exchange, February gold rose to $425.70 an ounce, its highest since 1988, after London trading closed for the day.
Spot gold peaked at $424.60, last seen in December 1988. It was quoted at $421.70/2.50 an ounce, up from its New York close at $414.80/5.30 on Wednesday. The exchange was closed on Thursday and Friday for New Year's observance.
"No hint that the dollar's fallen too far to fast," James Pogoda, vice president of precious metals at Mitsubishi International Corp, said of Bernanke's remarks. "So keep pressing the same direction, I guess - dollar lower, gold higher."
Silver was the best performer in the speculative free-for-all in metals. March silver hit a 5-1/2 year high at $6.30 an ounce and closed at $6.245, up 28 cents, or 4.7 percent.
"It's the same story as gold, except that silver is a lot less liquid, so it went a lot further," said a floor broker. "It was all fund buying around."
Spot silver was quoted at $6.14/16 an ounce, up from Wednesday's New York close for the year at $5.93/95 and Monday's fix in London at $5.975.
Silver, because of its wide uses in electronics and photography, is also considered an industrial material and benefited from the strong rally in base metals.
"You get a little support from its friend copper," said a New York precious metals trader. "Gold actually might be rallying on the back of silver here, which is a reversal of roles."
Copper hit a 6-1/2-year highs as expanding economies in the United States, China and elsewhere depleted inventories of base metals needed for construction and making consumer goods.
NYMEX April platinum shot up $31.20 to $842.50 an ounce. Spot last fetched $838.00/843.00. The metal, used in jewellery and catalytic converters, was buoyed by hopes for improving car sales but stayed under recent highs.
March palladium rose $7.30 to $204.80 an ounce. Spot was quoted at $199.50/205.50.
Comments
Comments are closed.