|
LONDON: Gold rose to a new 18-month high in Europe on Thursday, within a stone's throw of its record peak of $1,030.80 an ounce, as persistent weakness in the dollar prompted buying of the precious metal as an alternative asset.
Investors encouraged by signs of economic recovery have shown increasing willingness to move away from the perceived safety of the US currency and into assets seen as higher risk, such as equities, commodities and higher-yielding currencies.
"The gold market is expected to maintain is upward direction in today's trade, and approach key resistance at $1,033.90," said MF Global in a note.
"Support will come from technical factors, potential weakness in the dollar, and expectations for higher inflation down the road."
PRICES * Spot gold hit an 18-month high of $1,023.85 and was at $1,022.85 at 0631 GMT compared with $1,016.70 late in New York on Wednesday.
Silver reached a 13-month peak of $17.63 and was at later $17.61 against $17.35.
Platinum hit a high of $1,348, its strongest since September 2008, and was later at $1,346 from $1,344.50.
Palladium at $297.50 from $296. |
