– 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.
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’:
‘Central banks hate gold, because it limits their ability to print money.’
– Peter Schiff: US Rally Is Doomed, Gold Will Hit $5000
– Federal Reserve Admits Hiding Gold Swap Arrangements
– China’s view on the US dollar and the price of gold
– Gold shines as China dumps US dollar
– Hong Kong pulls all gold reserves from depositories in London
– Gold: Royal Mint doubles gold coin production to meet surge in demand
– Central Bank net gold sales show huge drop in first half 2009
– Northwestern Mutual: Buys $400 million in gold, price could double or even rise fivefold
– World’s top hedge fund manager has a gold position of at least $5.5bn (!)