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Montevideo, December 9th 2022 - 18:51 UTC

 

 

Gold and silver soar to new highs pushed by weak dollar and inflation

Monday, April 25th 2011 - 07:07 UTC
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Gold has climbed 5.6% so far this month Gold has climbed 5.6% so far this month

Gold advanced to a record, set for the best run since November 2006 after rising for nine days, as investors sought to protect their wealth against a weaker dollar, faster inflation and geopolitical tension in the Middle East. Silver climbed to a 31-year high.

Bullion for immediate delivery rose as much as 0.5% to $1,514.72 per ounce and traded at $1,511.65 at in Singapore. The June-delivery contract in New York advanced as much as 0.7% to $1,514.50 per ounce, also a record.

Gold has climbed 5.6% this month as the dollar fell 2.2% against a six-currency basket. The dollar dropped near a 16-month low against the Euro on speculation that the Federal Reserve will keep borrowing costs near zero while European Central Bank officials signal further rate increases.

Consumer prices are accelerating from China to India as oil surged to a two-and-a-half year high after violence in the Middle East and Africa threatened to disrupt supplies.

Silver gained as much as 1.4% to $47.8925 an ounce, the highest price since March 1980. It’s also up for a ninth day, the longest winning run since an 11-day increase in March 2008.

The ratio of gold to silver dropped to the lowest level since October 1980 as investors sought a store of value in the metal that may also benefit from economic growth. One ounce of gold bought as few as 31.5777 ounces of silver Monday.

Platinum gained for a fourth day, by as much as 0.5% to $1,831.50 per ounce, the highest price since March 7, and palladium rose as much as 0.9% to $774.50 an ounce.
 

Categories: Economy, International.

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