Email
Print
ShareNEW YORK: Gold prices zoomed past all previous records today to touch over USD1,200 dollar an ounce in futures trading, as a weak dollar and rising commodity prices increased the precious metal's appeal as a hedge against inflation.
The precious metal in the New York Mercantile Exchange for a February delivery spurted by USD18.20 to USD1,200.50 an ounce in early trade, while gold for spot trading in London rose to USD1,199.43, a level never seen before.
The US dollar fell after China's manufacturing grew at the fastest pace in five years, and the Standard and Poor's GSCI index of 24 commodities rose to a one-week high, led by energy and metals.
Marketmen said some investors shifted their funds from jittery equity markets to bullion for earning quick returns.
Gold has advanced 36% this year, more than the MSCI World Index of shares and US treasuries, and is heading for its biggest annual gain since 1979, they said.
Demand for bullion also increased among governments after the Reserve Bank of India and Mauritius bought the metal from the International Monetary Fund. China and Russia also added to their holdings.
