Gold hits 28-year high, platinum at record -
15 October 2007, Reuters
LONDON - Gold struck a 28-year high today, with the metal’s appeal polished by a weak dollar, record high oil prices and geo-political tensions, while continued supply worries swept platinum to lifetime peaks.
Other precious metals were carried along by buoyant sentiment in gold and platinum, with silver hitting its highest since the end of April.
Momentum has gathered on bullion as the US currency’s recent falls to successive record lows versus the euro made the dollar-priced metal cheaper for holders of other currencies and raised its profile as a portfolio diversification tool.
"Looking at all the underlying fundamentals, gold is extremely strong. There is a lot of expectation for further strength, there are a lot of reasons for the dollar to stay weak," Calyon analyst Michael Widmer said.
In late afternoon trade, spot gold had hit a 28-year high of $756,55 and was last trading at $755,30/756,00 per troy ounce, up from $748,40/749,10 quoted late in New York on Friday. The euro was up 0,4% on the day at $1,4238 - closing in on record peaks hit recently at $1,4281.
Firm crude prices highlighted gold’s role as a hedge against oil-led inflation. Both oil and gold were also supported amid rising tension between Turkey and Iraq, with Turkey’s parliament expected to debate a request for authorisation for an incursion into northern Iraq to deal with separatist Kurdish Militants.
US light, sweet crude for November delivery hit a record high of $85,19 per barrel. It was last trading up $1,01 at 84,70.
Spot platinum hit a record $1,427 per ounce today, having also been set or "fixed" in London at $1,425. It was last at $1,427,00/1,432,00, up sharply from $1,415/1,419 in late New York on Friday.
Speculative buying linked to worries over supply in key producer SA have pushed up prices and leasing, or lending, rates on the metal, with speculation that the market is set to turn in a deficit this year.
"Platinum continues to hold the most bullish forecast of the precious complex as the already tight fundamentals could be made tighter still should South African mine workers strike," said analyst James Moore of TheBullionDesk.com.
SA’s biggest mining union said on Friday it was preparing a strike notice which it hoped to submit to authorities this week to apply for a one-day protest against deaths and accidents at mines. A national strike over safety, pending government approval, would be a first for the union.
"There is just not a glut of metal out there and that is supporting prices along with a weaker dollar. Prices above $1,400 I think are sustainable," Calyon’s Widmer said.
In other bullion markets, the most active December Comex gold futures contract jumped $7,80 to $761,5 an ounce, closing in on the contract high of $800.
Benchmark August Tocom gold futures ended at ¥2,882 a gram, up ¥42 or 1,5% from the previous close. The contract earlier rose as high as ¥2,883, the highest for any benchmark since October 1984.
New York on Friday, while silver hit its highest since the end of April at $13,97. It was last at $13,96/14,01 an ounce up from $13,76/13,81.
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