Gold rises to record as dollar drops

Gold rises to record as dollar drops
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First Published: Wed, Nov 25 2009. 09 17 PM IST

 Action ahead: Gold bars at jewellery store in Tokyo. Prices may advance to $1,200 an ounce next week, according to an analyst. Tomohiro Ohsumi / Bloomberg
Action ahead: Gold bars at jewellery store in Tokyo. Prices may advance to $1,200 an ounce next week, according to an analyst. Tomohiro Ohsumi / Bloomberg
Updated: Wed, Nov 25 2009. 09 17 PM IST
Singapore / London: Gold climbed to a record in London and New York on a further drop by the dollar and on a report that India may buy more bullion for its central-bank reserves.
Action ahead: Gold bars at jewellery store in Tokyo. Prices may advance to $1,200 an ounce next week, according to an analyst. Tomohiro Ohsumi / Bloomberg
Gold has rallied 11% since India said on 3 November it bought 200 tonnes of gold from the International Monetary Fund. The country, the world’s largest gold consumer, is open to additional purchases from IMF, the Financial Chronicle newspaper reported.
The US Dollar Index fell for a third day.
Central-bank buying has been one of the main factors of this recent rally, Peter Fertig, owner of Quantitative Commodity Research Ltd. in Hainburg, Germany, said on Wednesday by phone. The weaker dollar is driving commodities higher.
Gold for immediate delivery added as much as $10.80, or 0.9%, to $1,180.20 (Rs54,643) an ounce and traded at $1,178.05 by 9.53am in London. Prices may advance to $1,200 next week, according to Fertig.
Bullion futures for February delivery on the New York Mercantile Exchange’s Comex division climbed 1% to $1,179.40 an ounce, after reaching $1,181.60. Up for a ninth day, futures are set for the longest stretch of gains since August 1982.
Reserve Bank of India governor D. Subbarao declined to comment on the gold purchase report. A further purchase would make the country’s stockpile the world’s eighth-largest, overtaking the Netherlands and Russia, according to figures from the producer-funded World Gold Council.
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First Published: Wed, Nov 25 2009. 09 17 PM IST
More Topics: India | Gold | Record | Prices | Bulllion |