NEW YORK, March 3 (Reuters)-- U.S. gold futures finished higher for the fifth consecutive session on Monday after traded just $8 below the historic $1,000 level, fueled by a combination of inflation worries, a dollar slide and strong investment demand amid a broad commodities rally.
Silver also reached a 28-year peak on the back of gold's strength and booming industrial demand, while the platinum group metals also gained sharply.
David Rinehimer, director at Citi Futures Perspective in New York, said that widespread investor demand and the weakened dollar -- which had a strong inverse relationship to bullion, had boosted commodities and gold.
"The price action of gold has limited any real aggressive selling and prompted hedgers to cover short positions," Rinehimer said.
Gold futures for April delivery on the COMEX division of the New York Mercantile Exchange settled up $9.20 at $984.20 an ounce. It bottomed at $975.50.
Gold ended off its record high $992.00 reached in morning session. The April contract has now set an all-time high for the fourth straight session.
Record high crude oil prices increased gold's appeal as a hedge against inflation. U.S. crude futures had reached an all-time peak of $103.95 a barrel. However, crude oil settled at $102.45 a barrel, sharply off its session peak.
The dollar dropped to an all-time low against the euro for a fifth straight day on Monday on mounting worries over the health of the U.S. economy.
The euro jumped to an all-time high above $1.5275, according to Reuters data.
Returns on U.S. holdings are eroding for foreign investors and many see precious metals as hard assets that can protect portfolios.
|
|
Thomas Winmill, portfolio manager who oversees $290 million of assets of Midas Fund (MIDSX) in New York, said that a negative real interest rate environment was prompting investors to keep allocating funds to hard assets such as gold.
COMEX estimated final gold futures volume at 129,342 contracts and gold options at 22,103 lots. Total turnover in Chicago Board of Trade electronic 100-oz gold futures was 20,124 lots at 2:22 p.m. EST (1922 GMT).
At 2:15 p.m., spot gold was quoted at $981.20/982.00, up from $970.80/971.60 at the close on Friday. London bullion dealers fixed the afternoon spot price at $988.50.
Silver closed near its 28-year high on strong investor buying and industrial demand.
COMEX's May silver finished up 26.5 cents, or 1.3 percent, at $20.180 an ounce, after surging to a 28-year high of $20.740 earlier. It bottomed at $19.860 an ounce.
Spot silver fetched $20.27/20.32, up from the Friday's close at $19.80/19.85. London silver was fixed at $20.16.
Silver last traded at these prices was in November 1980, when the Hunt Brothers of Texas tried to corner the market.
The active NYMEX platinum contract for April delivery PLJ8 rose $60.90, or 2.8 percent, to end at 2,241.60 an ounce. It scaled a record high of $2,245. Spot platinum fetched $2,230/2,237 an ounce.
NYMEX June palladium PAM8 ended up $9.05, or 1.6 percent, at $585.70 an ounce. Spot palladium traded at $576/580 an ounce.
(Reporting by Frank Tang; editing by Marguerita Choy) |
Prospectus
