Gold glitters to a lifetime high
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Sept. 29: Gold hit a lifetime high on Wednesday, its 10th record in 12 sessions, as the dollar dropped against a basket of currencies on expectations that the Federal Reserve would take new measures to shore up the economy.
Silver surged to a 30-year high as ETF holdings jumped to another record, palladium rose to a five-month high to track higher base metals prices, while a firm yuan raised hopes of more buying from gold consumers in China.
The Federal Reserve is preparing a fresh round of quantitative easing measures to announce at the end of its November 2-3 meeting, a report by influential hedge fund adviser Medley Global Advisors said on Tuesday, a source told Reuters. Gold rose as high as $1,312.05 an ounce and was at $1,311.55 up $4.15 from New York’s notional close. US gold futures also surged to a record.“We are on a bullish mood. The economy in the US is weak and the Fed will be launching some more rescue packages,” said Mr Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong. “The appreciation of the yuan causes some people in mainland China to buy a bit of gold.”
London silver fix price reached $25 in September 1980, according to a US-based industrial group. Silver’s main sources of demand are for use in industrial applications such as semi-conductors and jewellery.
The world’s largest silver-backed exchange-traded fund, the iShares Silver Trust, said its holdings rose to a record of 9,756.04 tonnes by September 28 from 9,613.02 tonnes on September 24.“Silver is cheaper is compared when compared to gold,” Mr Lee Cheong said. The dollar extended its losses against a basket of currencies to hit an eight-month low on Wednesday. Hurt by recent market speculation the Fed may embark on a second round of quantitative easing later this year.
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