Gold at record as investor look for alternative investment

Gold at record as investor look for alternative investment

The gold spurted by USD 15.20, or 1.1 per cent to USD 1,387.35 an ounce in London. The metal in futures trading for December delivery was 0.9 per cent higher at USD 1,388.10 on the Comex in New York.

The dollar slid to a lowest level since January against the euro and fell to a 15-year low versus the yen before reports likely to fuel speculation the Federal Reserve will ease policy further.

Gold, which usually moves inversely to the greenback, traded within one per cent of USD 1,400 an ounce in London. Gold, up 26 percent this year, is heading for its tenth consecutive annual gain, the longest winning streak since at least 1920.

Bullion has outperformed global equities, treasuries and most industrial metals, prompting record investment in gold- backed exchange-traded products. The metal rallied as central banks and governments maintained low borrowing costs and spent trillions of dollars to stimulate economies.

In India, the world’s biggest gold buyer, futures for December delivery reached a record Rs 20,028 per 10 grams on the Multi Commodity Exchange of India Ltd.

Silver in London advanced 3.9 per cent to USD 24.92 an ounce, the highest price since March 1980. The metal reached an all-time high of USD 50.35 in New York in 1980, a year after the Hunt brothers tried to corner the market.