MW: Gold futures rise to fresh highs near $1,360 on Globex
By Myra P. Saefong, MarketWatch
TOKYO (MarketWatch) — Gold futures resumed their climb Wednesday to touch a fresh high of nearly $1,360 an ounce in electronic trading on Globex, buoyed by weakness in the U.S. dollar.
December gold (GCZ10 1,357, +10.50, +0.78%) climbed as high as $1,359.90 on Globex in Tokyo’s afternoon trading. It later eased slightly but was still up $10.30 at $1,357, surpassing the record intraday high of $1,356.30 reached Monday in New York.
Investment demand for gold got a boost as the dollar index (DXY 77.16, -0.20, -0.26%) fell to 77.150 from 77.375 late Tuesday in North American trading.
“Investment demand has become an essential component within the gold market, helping to sustain high prices in the face of an ever-widening gap between supply and fundamental sources of demand,” according to Natixis Commodity Markets’ fourth-quarter metals review report, released Monday.
“While fears of recession, if not deflation persist, and while major central banks remain prepared to expand their balance sheets further through an additional round of quantitative easing, gold prices continue to be supported,” the report said.
On Tuesday, gold for December delivery had fallen $7.70 to close at $1,346.70 in New York, as the dollar recouped some of its recent losses. See Tuesday’s metals column.
