MercoPress. South Atlantic News Agency

Gold hits a new record as investors seek protection against sinking US dollar

Federal Reserve could further loosen monetary policy

World stocks jumped to a six-month high, gold hit another record, and the dollar weakened on Wednesday on expectations that the US Federal Reserve will further loosen monetary policy, boosting risk appetite.

Gold prices reached an all-time high of $1,374.15 an ounce as investors sought protection against a sinking dollar. Other commodities also climbed -- oil prices shot up 1.6 percent to close just above $83 a barrel.

Japanese stocks were not so attractive since investors have been cautious about Japan's equity market as the Yen remains close to a 15-year high against the dollar, making stocks more expensive for foreigners.

Minutes from the Federal Reserve's Sept. 21st meeting, which were released on Tuesday, showed officials discussed the possibility of buying more long-term US government debt to drive borrowing costs lower. They also mulled ways to nudge the public into expecting higher levels of inflation in the future to spur spending.

All three major US stock indexes closed at their highest levels in five months. Industrials and materials sectors led the way as commodity prices soared on data showing China's month-on-month import numbers hit a record high.

Meantime in Singapore spot gold rose to a fresh all-time high at $1,376.95 an ounce, and later eased to $1,375.65. US gold futures for December delivery also hit a new record high at $1,377.9.

Spot silver climbed to $24.22 an ounce, its highest in three decades, before easing to $24.19.