Gold at new high as dollar resumes slide
By Jamie Chisholm, Global Markets Commentator
Published: November 18 2009 07:19 | Last updated: November 18 2009 13:10
13:10 GMT: Gold hit another peak on Wednesday and stock markets edged higher as the dollar resumed its slide.
Bullion struck a fresh peak of $1,149.15, though it later traded up 0.6 per cent at $1,147.75 an ounce. It had advanced strongly late on Tuesday in spite of the dollar also gaining ground. The move challenged recent market convention that a weak dollar was good for riskier assets and vice versa.
However, in early trade on Wednesday, the dollar reverted to recent type, losing 0.6 per cent to $1.4966 versus the euro. On a trade-weighted basis the dollar was also off 0.5 per cent to 74.93.
Other commodities followed in gold’s wake. Copper moved back to near 14-month highs, up 1.7 per cent at $3.161 a pound, while oil was up 1 per cent at $79.88 a barrel. Inventory data on the energy complex will be released in the US later on Wednesday.
Stock market traders appeared more circumspect, however, after Wall Street managed to turn a loss into a small gain overnight. The S&P 500 added just 1 point to 1,110.3, and equity futures on Wednesday were suggesting it would gain another point at the opening bell. The Vix, an index that gauges investor anxiety, fell 2 per cent to 22.41 on Tuesday.
Gold just keeps pushing higher, should increase value here imo
