Gold hits record beyond 1,341 dollars

5th October 2010, Comments 0 comments

Gold prices rocketed to a new historic peak above 1,341 dollars per ounce here on Tuesday, boosted by the flagging dollar.

The glamorous precious metal soared as high as 1,341.28 dollars on the London Bullion Market at about 1710 GMT, extending its record-breaking rally.

"Gold has hit yet another high -- there seems little sign to the end of gold's rally," said trader Phil Gillett at financial spread-betting firm Spreadex.

Sister metal silver meanwhile leapt to 22.75 dollars an ounce -- its highest level since September 1980.

The dollar fell sharply on Tuesday after Japan adopted a fresh series of economic stimulus measures, encouraging speculation the US Federal Reserve will follow suit and thereby weaken the US currency.

"Gold and silver have surged today as central banks give indications that they are about to crank up the printing presses with the Bank of Japan action sending more investors to the perceived safe haven status of the two precious metals," added CMC Markets analyst Michael Hewson.

A struggling US unit can make dollar-priced commodities like gold and silver cheaper for buyers holding rival currencies.

© 2010 AFP

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