MUMBAI (Commodity Online): Global gold futures surged to ever time high in the history on Monday thanks to the continuing abstain from US dollar by the investors. The COMEX Gold prices surged to $ 1167.8 per ounce following the comments from Fed's Bullard.
Federal Reserve Bank of St. Louis President James Bullard said Sunday that the U.S. should continue buying mortgage-backed securities past the first quarter of 2010, when asset purchases are due to end.
Gold futures surged, rising $21 an ounce to $1,167.80 an ounce. The counter is trading in an uncharted zone and may rally till $1200. The moves come ahead of existing-home sales data for October, due at 10 a.m., EST, which may show a rise to 5.74 million from 5.57 million.
Domestic golf futures on MCX are trading near the days high at Rs 17532 per 10 grams. It hit a new all time high of Rs 17577 earlier in the day.
Start trading in commodities from as low as $50. Join nowSpot Gold prices touched a high of $1,153/oz last week, gaining almost 3% and prices traded higher on the back of bullish sentiments related to higher investment demand for the yellow metal.
Prices could continue to trade with a positive bias in this week but will also take cues from the movement in the Dollar Index. The dollar strengthened by 0.4% last week and put pressure on the yellow metal as it made it look expensive for holders of other currencies.
Though the short term trend in Gold remains up, we feel that even slight strength in the dollar could put pressure on prices. Investment demand from central bankers is on the rise and this factor is expected to be positive for the yellow metal. If more news on gold buying by central bankers is released in the coming days then prices could test new highs.
