Gold prices might touch $1120 this week

Today’s trading has gold climbing to a new record high, past the $1100 mark as the dollar continues to fall to a 15-month low point. U.S. equity markets were also higher as well. The two are increasing traders risk appetite, driving higher yielding assets for further gains.

The price of spot gold leaped past previous resistance levels to a record high of $110.70. After hitting the record high, the commodity is currently trading down slightly at $1103.00 from an opening price of $1104.15.

Two important factors in the recent appreciation of the price of gold have been the falling U.S. dollar and the rising equity markets, particularly the Dow Jones Industrials. The dollar has fallen sharply against the euro. A struggling U.S. economy that is incessantly increasing its percentage of debt to GDP, combined with rising unemployment has sent the EUR/USD to a 15-month low, with the pair now trading at 1.5000. The Dow now stands at a 52-week high and has shown little sign of weakening, much like the prices in gold.

Spot Gold prices have jumped are continue to ride a wave of optimism since last week’s large purchase of gold by the Reserve Bank of India. The 200 ton purchase from the IMF has helped the price of gold jump over 5.5% since last week. The price shows no signs of slowing, even after the commodity has passed most technical boundaries