Gold hits record on Fed push

Sep 23, 2010 |

Reuters

London, Sept. 22: Gold hit record highs for a fifth consecutive session on Wednesday after the Federal Reserve signaled it stood ready to inject fresh cash into the economy, knocking the dollar and whetting investor appetite for bullion.

Silver also hit a two-and-a-half-year peak and edged closer to its highest in 30 years as investors sought cheaper safe-haven assets, which was reflected in the largest one-day inflow of metal into the iShares Silver Trust in 10 months.

Spot gold hit a new record of $1,296.10 an ounce and was bid at $1,293.75 an ounce, showing a 0.6 per cent gain on the day. US gold futures rose $21 an ounce to $1,295.30, having hit a contract high at $1,298.00.

The metal is benefiting from concerns over the stability of the financial system and the outlook for fiat currencies. While dollar weakness, a typical driver of gold, is lifting prices, the metal’s appeal as a safe store of value has broadened.

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