Gold is holding onto its $1,100 value, as the value of the dollar continues to decline. The Euro and other currencies are continuing to gain ground against the dollar as well, which should lead more investors towards Gold as an attractive alternative and hedge against inflation. See the following article from The Street for more on this.
Gold futures hold the $1,100 level as the dollar is pummeled.
Gold delivery for December was popping $11.20 to $1,106.90 an ounce at the Comex division of the New York Mercantile Exchange. The contract has traded as low as $1, 096 and as high as $1,111.70.
Silver was rising 28 cents to $17.66, but still under the critical $18 resistance level, while copper was up 3 cents to $2.98.
The U.S. dollar index was slipping to $75.02 after world leaders abandoned the dollar during the G20 meeting in Scotland. Finance policymakers reaffirmed their intention to preserve stimulus programs and keep interest rates low seemingly unconcerned with dollar weakness. The Euro rallied to $1.50 against the dollar and helped push gold past its new resistance level of $1,100 as investors looked for an alternative asset and a hedge against inflation.
“The trend continues”, argues George Gero, vice president of global futures at RBC Capital Markets. “Most of that is due to the dollar and crude. Crude is up somewhat because of the upcoming hurricane season and some refiners beginning to shut down in the gulf coast and gold is up because the dollar is down.”
Mining stocks were also seeing strength. Barrick Gold(ABX Quote) was rising 2.80% to $42.97 while other big cap miner, Newmont Mining(NEM Quote) was up 2.63% to $50.08.
Shares of Freeport McMoran Copper & Gold(FCX Quote) was popping 3.63% to $82.26 and Yamana Gold(AUY Quote) was rising over 4% to $12.52.
Shares of Market Vector Gold Miners(GDX Quote), a basket of gold mining stocks, was rising over 3.5% to $49.34. SPDR Gold Trust has not added any tonnage since last Tuesday when gold started making a run to $1,100. Shares were steady at $108.51.
This article has been republished from The Street. You can also view this article at The Street, an investment news and analysis site.