Gold jumps above $1,000 level on weak dollar

image On Friday gold rose above $1,000 level again on the heels of further weakening dollar as markets are sized with inflation fears on the score of strong oil prices.

On Tuesday gold achieved $1,000 an ounce for the first time since February, with spot gold staging a stunning run to an 18-month high of $1,007.45 on the same day, on technical buying momentum and a slide in the dollar.

Gold XAU= was at $1,000.45 per ounce at 0324 GMT, up 0.5 percent from the notional New York close of $995.50. U.S. gold futures for December delivery GCZ9 were at $1,002.8 per ounce, up 0.6 percent.

December gold futures rose on Tuesday to as high as $1,009.70, their highest since February. It remains to be seen, however, whether gold will be able to maintain these lofty levels, or mark new highs.

The dollar hit a seven-month low against the yen on Friday after solid Chinese economic data triggered dollar-selling against higher-yielding currencies and other majors. A weaker dollar enhances gold’s allure as an alternative asset, a factor which has helped fuel this week’s rally.

Oil prices rose to top $72 a barrel on Friday, extending the previous session’s four-day rally after a U.S. report showed a surprise decline in crude stockpiles and OPEC said it would maintain official output curbs.

Traders have pointed to a lack of physical buying of gold, including by major consumer India, as a factor likely to undermine the current rally.

There was a lack of fresh investment flows into the world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust LD. The latest data showed holdings in the SPDR Gold Trust GLD stood at 1,077.63 tonnes, unchanged since Sept 4.

Precious metals prices at 0322 GMT:

Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1000.35 4.85 +0.49 13.66
Spot Silver 16.81 0.13 +0.78 48.50
Spot Platinum 1285.00 1.00 +0.08 37.88
Spot Palladium 289.50 1.00 +0.35 56.91
TOCOM Gold 2952.00 -10.00 -0.34 14.73 25462
TOCOM Platinum 3786.00 -21.00 -0.55 42.76 5909
TOCOM Silver 492.80 5.30 +1.09 54.34 311
TOCOM Palladium 857.00 -6.00 -0.70 55.82 428

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


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