Gold Hits New Record High Near $1,100

IMF Sold 200 Metric Tons of Gold to The Reserve Bank of India (Bloomberg)


The precious metal continues to push higher in electronic trading after closing at an all-time high in the previous session.

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NEW YORK (CNNMoney.com) — Gold rose to a record high Wednesday, extending gains from the previous session.

Gold for December delivery surged $5.60 to $1,090.40 an ounce in electronic trading after hitting an all-time high of $1,096.20 earlier in the session. On Tuesday, gold closed at a record $1084.90 an ounce.

Gold surged more than $30 in the previous session after the International Monetary Fund sold 200 metric tons of the precious metal to India’s central bank.

The sale raised speculation that more overseas central banks will increase their holdings of gold as an alternative to currencies, such as the dollar.

The dollar was down 0.2% versus the euro to $1.4752 and slid 0.5% against the U.K. pound to $1.6521. It rose 0.6% versus the yen.

A weaker greenback makes gold and other commodities that are priced in dollars cheaper for buyers in other currencies. As a result, gold typically rises when the dollar falls.

By Ben Rooney, CNNMoney.com staff reporter
November 4, 2009: 6:49 AM ET

Source: CNN Money

More on gold:

WGC CEO: Central Banks Will Become Net Buyers of Gold

David Tice: Gold Heading to $3000 Unless America Hits the ‘Reset’ Button

Jim Rogers: ‘I Am Quite Sure Gold Will Go Over $2000′, Dollar Will Lose Reserve Status

‘Federal Reserve needs to cut US Dollar in half over next 14 years’:
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Peter Schiff: US Rally Is Doomed, Gold Will Hit $5000

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