Bloomberg- Gold and silver rose as the decline in the value of the dollar against the euro boosted the appeal of the precious metals as hedges against inflation.
The dollar fell for a third straight day against the euro after touching an all-time low yesterday. Gold is up 31 percent this year and yesterday reached the highest price since 1980, as a weakening dollar has sent commodities such as oil and tin to their highest ever. Silver touched a 26-year high yesterday.
“The depreciation in the dollar is forcing commodities higher,” said Tom Hartmann, a commodity broker at Altavest Worldwide Trading Inc. in Mission Viejo, California. “Prices have had to rise to maintain their value. If we get into an inflationary cycle, gold can go higher than the old record.”
Gold futures for December delivery rose $4, or 0.5 percent, to $837.50 an ounce on the Comex division of the New York Mercantile Exchange, the highest closing price ever for a most- active contract.
The price yesterday climbed to $848, the highest for a most- active contract since Jan. 21, 1980, the day gold reached a record $873 and closed at $834. That day, gold for immediate delivery reached a record $850.
