The price of spot gold hit a record again with prices above $1,500 an ounce on the back of a weak dollar and concerns over rising global inflation and debt Spot gold surged to a record high in thin Good Friday trading held up by a weak dollar and factors ranging from global political uncertainty to inflation concerns.
Silver also raced to its loftiest in 31 years, notching the milestone for a seventh straight day and outstripping gold's weekly gains by a huge margin.
The ongoing eurozone sovereign debt crisis, unrest in the Middle East and north Africa, rising global inflation, and recent worries over the fiscal stability of the United States have fuelled the record-breaking rally in these precious metals.
Spot gold rose to an record of $1,512.50 (£915.84) an ounce, before easing to $1,507.69, on track for a weekly rise of 1.5% – its sixth consecutive week of gains.
Spot silver hit $46.69 an ounce, its highest since 1980, on course for a weekly rise of 8.4%s.
Silver has gained 51% so far this year, and gold 6%. This compares with a corresponding 1% rise in the London Metal Exchange price of copper, the barometer of the industrial metals complex.
Supporting precious metals, the dollar was languishing near a three-year low against a basket of currencies, pressured by record low interest rates and the weight of the US budget deficit.
Gold is expected to retain its strength as long as the current conditions continue and the dollar remains weak. Analysts predict the price of bullion is seen to rise to $1,700 an ounce by 2015.
However, traders believe a correction may be on the horizon after gold's rapid ascent.
"Gold is likely to consolidate around the $1,500-level next week," said Li Ning, an analyst at Shanghai CIFCO Futures. "The angle of the recent rally is very sharp, and we are bound to see some correction in the near term."
No comments:
Post a Comment