US gold futures rose to record highs for a second straight session early on Wednesday as investors sought the metal amid mounting worries about potential inflation that encouraged investors to buy the precious metal. Most-active December gold futures up $4.30 at $1,044 an ounce at 11:15 am EDT (1515 GMT) on the COMEX division of the New York Mercantile Exchange.
Ranging from $1,037.80 to $1,049.70 - a record high. The US dollar rose on Wednesday, rebounding from a low of more than eight months against the yen as optimism from the prior session dissipated. However, market watchers still on the fence about the dollar's strength as massive US fiscal and monetary stimulus is expected to eventually weaken the greenback.
Gold's rise is not a dollar phenomenon but an "anti-currency" phenomenon as money is flowing away from almost any and all currencies, said Dennis Gartman, independent investor and publisher of the daily Gartman Letter. The world's largest gold-backed ETF, the SPDR Gold Trust, said its holdings stood at 1,100.514 tonnes as of October 6, up 0.2 percent or 2.441 tonnes, from the previous business day for the third consecutive day of increase.
On Tuesday, the December contract fresh all-time high surpassed the previous record for the active contract of $1,033.90 set in March 2008. Gold-to-oil ratio at 14.72, up from the previous session's 14.62. COMEX estimated 11 am volume at 102,019 lots. Spot gold was at $1,044, against $1,040.85 quoted late in New York on Tuesday. December silver up 28 cents, or 1.6 percent, at $17.575 an ounce, up with gold.
Ranged from $17.310 to $17.595, a two-week high. COMEX estimated 11 am volume at 21,009 lots. Spot silver was at $17.53, versus its previous finish of 17.32 an ounce. January platinum up $12.70 at $1,338 an ounce on broad-based precious metals rally. Spot platinum was at $1,325.50, compared with its previous finish of $1,313.50. December palladium up $5.70, or 1.8 percent, at $316 an ounce, up with platinum. Spot palladium was at $312.50, against its previous close of $305.50.