US gold futures rose to record highs well above $1,200 an ounce on Wednesday in the face of a stronger dollar, boosted by heavy buying by hedge funds and other gold investment products. COMEX February gold up $13.70, or 1.5 percent, at $1,213.90 an ounce at 10:32 am EST (1532 GMT) on the NYMEX.
Ranged from $1,196.50 to $1,218.40 - an all-time high. Momentum and fund buying drive gold to all-time highs above $1,200 an ounce level, said traders. Gold firm in spite of a dollar rise on the back of a worse-than-expected US private sector report.
Buying by hedge funds, general public through vehicles such as gold exchange-traded funds clearly supporting prices, said New York metals broker. Gold stocks, measured by the Gold BUGS index, adding 3 percent following Tuesday's sharp rally. Gold-to-oil ratio at 15.66, up from the previous session's 15.30. COMEX estimated 10 am volume at 115,305 lots.
Spot gold at $1,214.80 an ounce, after hitting a record high of $1,216.75. Finished the previous session in New York at $1,196 on Tuesday. March silver up 20 cents, or 1.1 percent, at $19.41 an ounce, tracking record gold prices. Ranged from $19.10 to $19.47 - the highest level since July 2008. COMEX estimated 10 am volume at 19,707 lots. Spot silver was at $19.36, against $19.07 in the previous session in New York.
January platinum up $23.90, or 1.6 percent, at $1,510.50 an ounce, boosted by gold's rally and signs of recovery in auto demand. Spot platinum $1,506 an ounce. March palladium up $9.10, or 2.4 percent, at $393.05 an ounce on strong investment buying amid a precious metals rally. Spot palladium $389 an ounce.
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