Gold hit another record on weakening dollar

Sunday, 10 April 2011 04:15

Once again gold  hit another record as a weakening dollar boosted demand for the precious metal as an alternative asset and an inflation hedge. Silver climbed above $40 an ounce to a 31 year high and again the gold/silver ratio is at an all time low of around 37 times.

June delivery gold futures rose $16.60, or 1.1 %, to $1,475.90 in after-hours trading on the Comex in New York. The metal settled up $14.80, or 1 %, to $1,474.10 in floor trading. Gold for immediate delivery in London climbed as much as 1.2 % to a record $1,475.52.

Silver futures for May delivery advanced $1.056, or 2.7% to $40.608. The price in after hours trading hit $40.945, the highest since January 1980, silver has advanced over 7.6 % in the last week. 

Silver held in exchange-traded products rose 27.57 metric tons to 15,423.09 tons yesterday, the highest level since at least February 2010. Analysis as saying silver will average $31.39 this year, up 20 % from eariler forecasts. 

Palladium futures for June delivery rose $13.95, or 1.8 % to $794.20 an ounce on the New York Mercantile Exchange, after touching a one-month high of $804. Platinum futures for July delivery gained $21.50, or 1.2 %, to $1,812.10 an ounce on the Nymex. Earlier, the price reached $1,822.10, the highest since March 7.