Gold at record high
18 Sep 2010
Gold prices ended the week at a record high of more than $1,280 a troy ounce with investors lapping up the precious metal amid speculation that central banks around the world would launch another round of monetary easing. Japan's intervention in favour of the yen and the likelihood that the US Fed Reserve would also initiate further quantitative easing next week at its monthly interest meeting are now driving investors towards safe haven investments.
The rally in the yellow metal has also received a boost from signals that several Asian central banks, as well as that of Russia, may become net buyers of gold after near two decades of net selling.
Bullish comments from leading gold miners have also fuelled sentiment.
The world's third-biggest gold miner, AngloGold Ashanti, said it planned to wind up its forwards sales, indicating clearly that it believed high prices were here to stay. It said it will wind up its hedge book by early 2011, joining Barrick Gold, the industry's leader, in putting an end to the legacy of forward sales.
Market analysts said the move, announced Wednesday, sent a bullish signal that top gold miners were confident that current record prices were here to stay.
Spot bullion hit a nominal record of $1,282.75 a troy ounce in London on Friday, up 3 per cent on the week. So far, it has gained 17 per cent for the year continuing a decade-long rally.
