SAN FRANCISCO – Gold futures went on retreat to take Monday, lists $ 1,400 an ounce to settle at a new best. Gold for December delivery (GCZ10 1409, +5.30, +0.38%) added $ 5.50, or 0.4%, to $ 1,403.20 an ounce on the Comex division of the New York Mercantile Exchange.
It hit an intraday high of $ 1,409.40 per ounce, according to FactSet Research. Gold began floor trading in the red, losing up to $ 10 from Friday close settlement as the dollar rose. The metal fast compared its losses, however, as renewed concerns about the debt was central Europe suffered.
The cost of insuring Irish debt against default climbed to a new record Monday, and the cost of insuring debt Portuguese also expanded to a record. Read more about the Portuguese and Irish CDS
Silver and copper also hit historic high levels.
Gold had closed at record Thursday and Friday. The metal hit record highs in 1917 in less than five weeks in September and October.
The last set of records came after the Federal Reserve’s decision to open a new round of bonds to buy an additional 600 billion U.S. dollars more than eight months. This has investors a new reason to sell the dollar.
The dollar traded stronger the kickoff of the week, however, pressure on resources to get started. ! The dollar index / i quotes/comstock/11j: dxy0 (DXY 77.02, +0.47, +0.61%), the performance of the U.S. dollar against a basket of rival currencies six tracks, rose 0.6% to 77,044.
The euro weakened bonds Greece, Ireland and Portugal came under pressure – a flare-up of the sovereign-debt problems of Europe has suffered for much of the year, giving gold the catalyst needed to rally even as further strengthen the dollar. See more about the dollar rises as debt fears weigh on Euro.
Meanwhile, as world leaders prepare to meet in Seoul this week, Robert Zoellick, World Bank President, told the Financial Times op-ed piece that leading economies should consider “using gold as an international reference point Market expectations about inflation, deflation and future currency values. ”
A return to a kind of currency link to gold would be “practical and feasible, not radical,” said Zoellick. He made the proposal as part of reforms in advance of the Group of 20 meetings in South Korea are considered. Read more about Zoellick’s comments
That gold does not rise early Monday after Zoellick’s piece “tells the story,” said Bill O’Neill, one of the key at Logic Advisors in New Jersey.
“The gold standard is not going to happen anytime soon,” he said. To pull off something so huge and complicated in today’s financial world would be a unified political will that just are not that necessary, O’Neill added.
Such a system could stabilize gold and put what is a thin market in a more orderly one, said James Cordier, portfolio manager at Optionsellers.com in Florida. Currencies would also benefit, he added.
“We have our paper [money] bound to something,” he said.
Meanwhile, silver rallied a new 30-year high. Silver for December delivery (SIZ10 2768, +24.80, +0.90%) rose 68 cents, or 2.6%, to $ 27.43 an ounce.
Copper for December delivery (HGZ10 396.00, +0.35, +0.09%) added a penny, or 0.2%, to $ 3.96 per pound.
source:marketwatch
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