Gold flat near 18-month high

image Thursday morning, bullion hovered near 18-month highs hit the day before the dollar slipped, on optimism about the global economy prompting investors to turn to buying riskier and alternative assets.

Spot gold moved up slightly by 0.1% to $1,017.70 an ounce as of 3:06 GMT from New York’s notional close of $1,016.70. Bullion rose as high as $1,020.50 an ounce yesterday marking highest since March 2008 level.

Experts consider the correlation between the dollar and gold has deepened as gains in bullion accelerated, with currency dealers also taking cues from the gold market to bet on the greenback’s weakness. Gold demand accelerated when the dollar extended losses against the euro to its 2009 low, reinforcing the metal’s demand as an alternative investment.

Traders are watching the dollar’s move against the euro to gauge whether gold’s rally will be sustainable and how far prices can rise.

US gold futures for December delivery GCZ9 were barely changed at $1,019.6 an ounce from $1,020.20 on the COMEX division of the New York Mercantile Exchange. The contract reached a high of $1,023.30 on Wednesday, unseen since July 2008. US gold futures are eyeing the prior record high on gold’s continuation chart of $1,033.90 an ounce.

The SPDR Gold Trust GLD reported its holdings to climb to 1,086.479 tonnes as of September, 16, up 7.628 tonnes or 0.75 from the previous business day.

Gold’s rally also boosted other precious metals rise. Platinum was at a one-year high of $1,346.00 on Thursday. Silver, at the same time, hit a new 13-month high of $17.46.

By about 3:15 GMT the other precious metals were quoted as much as:

Metal Last Change Pct chg YTD pct chg Turnover

Spot Gold 1017.70 1.00 +0.10 15.63

Spot Silver 17.44 0.09 +0.52 54.06

Spot Platinum 1346.00 1.50 +0.11 44.42

Spot Palladium 296.00 0.00 +0.00 60.43

TOCOM Gold 2991.00 25.00 +0.84 16.25 32515

TOCOM Platinum 3944.00 49.00 +1.26 48.72 9401

TOCOM Silver 511.40 10.40 +2.08 60.16 540

TOCOM Palladium 875.00 8.00 +0.92 59.09 67

TOCOM prices are in yen per gram, except TOCOM silver which is priced in yen per 10 grams. Spot prices are in $ per ounce.


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