Gold futures jumped $10 to finish at $750 an ounce and other precious metals ended higher in New York on Friday, boosted by the dollar's drop to record lows against the Euro and major currencies. "It's all on the US dollar, which is getting crushed, popping up the metals here," said Joseph Gizzard of Saibu Commodities, a Comex floor trader.
Most-active December gold on the Comex division of the New York Mercantile Exchange settled up $10.10 or 1.4 percent at $750. It rose from $740 in overnight screen trade to $752.80, which marked a fresh 28-year high. The dollar fell to a record low against a basket of major currencies and against the Euro on Friday after tame inflation data backed views the Federal Reserve would cut interest rates again to shore up economic growth.
The dollar index, a gauge of the greenback's value against a basket of six major currencies, slid to a record low for a second straight session, to below 78. The Euro also rose to a lifetime high of $1.4278, according to Reuters data. George Gero, vice president of RBC Capital Markets Global Futures, said record open interest and buying on the last day of the third quarter boosted gold futures.
"The momentum players are here today" amid higher volume and the firmer close of Thursday, Gero said. On official gold sales, Sweden's central bank said it would sell up to 10 tonnes of gold during the next 12 months and use the proceeds to buy foreign currency denominated securities.
Meanwhile, Barrack Gold Corp has no plans to return to the futures markets to hedge its gold production, but does hedge its copper output, Chief Executive Greg Wilkins told television broadcaster CNBC on Friday.
Asked whether the company would seek to manage costs by resuming the hedging positions from which it exited in the second quarter, Wilkins said: "not on the gold side." He added, "We will manage our cash flows around copper and we'll certainly manage our currencies using the forward market." "Frankly, our investors are really looking to benefit from the upside of gold and we share that point of view."
Comex estimated final volume at 107,239 contracts, and gold options were estimated at 28,350 lots. Turnover in Chicago Board of Trade electronic 100-oz gold futures were 28,561 lots at 3:21 pm. At 3:30 pm EDT (1930 GMT), gold bullion was at $742.40/3.20, up from the New York on Thursday close at $733.80/4.60. London bullion dealers fixed the afternoon spot reference price at $743.
Nymex January platinum closed up $25.2 or 1.8 percent at $1,398.20 an ounce after reaching a contract high of $1,396.90. Spot platinum was quoted at $1,385/1,390. December palladium closed $4.20, or 1.2 percent, higher at $351.95 an ounce. Spot palladium was quoted at $343.00/348.00. Comex December silver finished up 27.5 cents or 2 percent at $13.92 an ounce, trading between $13.625 and $14. Spot silver rose to $13.71/13.76 from $13.50/13.55 at the close. London silver was fixed at $13.65 per ounce.