Recovery? What Recovery? Gold Hits Record High
Everything is under control. Move along now, nothing to see here.
Gold hit a record high at $1,036.40 an ounce as the dollar dropped on a report, later denied, that Gulf Arab states were considering abandoning the U.S. currency for oil trade.
A positive technical picture for gold fueled buying on the fund side, traders said. However, the weight of near-record long positions in New York gold futures still leaves the market vulnerable to correction.
Spot gold was bid at $1,032.05 an ounce at 1319 GMT (9:19 a.m. EDT) against $1,016.65 late on Monday.
U.S. gold futures also hit an all-time high, with gold futures for December delivery on the COMEX division of the New York Mercantile Exchange hitting a peak of $1,038.00 an ounce. They were later up $16.10 at $1,033.90.
"Investors (and) funds keep buying as the technical side looks good," said senior Commerzbank trader Michael Kempinski. "Even without the weak U.S. dollar, gold is performing quite well."
Gold also hit six-month highs when priced in sterling and euros, breaking above 700 euros an ounce for the first time since early April.
Anyone know if JP Morgan (JPM) and Goldman Sachs (GS) are still actually buying gold on the Comex? When in Bizarro World... Man, that December delivery is going to hurt and bad.