Pham-Duy Nguyen and Nicholas Larkin
November 11, 2009
[efoods]Gold rose for an eighth straight session in New York, the longest rally since early 2006, and reached a record as a decline in the dollar sparked demand for the precious metal as an alternative asset.
Gold touched $1,119.10 an ounce, an all-time high, as the U.S. Dollar Index, a six-currency gauge of the greenback’s performance, fell as much as 0.3 percent to a 15-month low before erasing the loss. India’s central bank bought bullion last month to diversify its assets. Before today, gold jumped 6 percent this month while the currency index lost 1.8 percent.
“The interest that central banks have shown for gold has really lit a fire under the market,” said Matt Zeman, a metals trader at LaSalle Futures Group Inc. in Chicago. “People are questioning the value of not only the U.S. currency but all paper currencies. Investors are more comfortable holding gold.”
This article was posted: Wednesday, November 11, 2009 at 12:11 pm