Gold moved back toward its all-time high on Monday, despite late gains in the dollar, as investors prepared for what many see as a likely second round of economic stimulus by the US Federal Reserve. By 3:40 pm EDT (1940 GMT) spot gold had risen to $1,353 an ounce, above Friday's closing bid at $1,343.25 but below the all-time high of $1,364.60.
In New York, COMEX December gold futures closed $9.10 higher at $1,354.40 an ounce, setting a session peak at $1,356.30 as they approached their record at $1,366. Many players think the Fed will implement QE2 at its next meeting after mid-term congressional elections, said Sterling Smith, a Country Hedging Inc analyst in St Paul, Minnesota.
Silver hit its highest level since 1980 at $23.65 an ounce and was later up at $23.31 versus $23.20. Holdings in the iShares Silver Trust, the world's largest silver-backed exchange-traded fund, rose to a new all-time high at 10,085.62 tonnes on Friday. The gold-silver ratio - the number of ounces of silver needed to buy an ounce of gold - fell to 57, its lowest in more than two years, from 68 in late August.$1,699.35, and palladium fetched $585.0 against $583.53.
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