Gold futures on the COMEX Division of the New York Mercantile Exchange surged the most since March 2009 and hit a record high settlement on Thursday, as U.S. dollars registered sharp losses after U.S. Federal Reserve’s decision to pump 600 billion U.S. dollars into the system. Silver and platinum both staged an explosive comeback.
The most active gold contract for December delivery surged 45.5 dollars, or 3.4 percent, to finish at 1,383.1 dollars per ounce.
The greenback suffered a severe drubbing in the wake of Fed’s announcement late Wednesday to buy 600 billion dollars’ worth of treasuries in hopes of spurring the economy, which was more aggressive than trade expectation.
The trend of gold price has turned firmly upward with help of Fed’s highly-expected program, which will depreciate the dollar and bolster inflation over the next few years, and thus burnish the already shinning gold by increasing its appeal as a hedge against inflation as well as an alternative asset to the weak fiat currencies. “The Fed’s announcement was quite dollar negative, which made gold bulls very happy,” Mike Daly, gold specialist with PFGbest told Xinhua. “We also have some poor economic data today, which gave traders and investors enough reason to purchase gold”, he added.
Daly also mentioned that the recent dip in gold prices has given India buyers a good opportunity to purchase before Diwali festival of lights on Friday, when gold buying reaches its peak in India. “The silver may outperform gold,” said Daly.
December silver surged 1.607 dollars, or 6.6 percent, to 26.043 dollars. January platinum hiked 58.7 dollars, or 3.5 percent, to 1, 755.9 dollars per ounce. (PNA/xinhua)