Sept. 29 (Bloomberg) -- Gold futures rose to a record for the ninth time since mid-September as the slumping dollar boosted demand for the precious metal as an alternative investment. Silver reached the highest price since 1980.
In New York, gold reached an all-time high of $1,314.80 an ounce, and silver climbed above $22 an ounce. The greenback dropped to the lowest level since January against a basket of major currencies on bets the Federal Reserve will ease monetary policy further to bolster the slowing U.S. economy.
“Most of what we have witnessed in the complex during the month has been clearly based on perceptions of an inevitable second chapter in Fed accommodation,” said Jon Nadler, a senior analyst at Kitco Inc. in Montreal.
Gold futures for December delivery rose $2, or 0.2 percent, to settle at $1,310.30 at 1:53 p.m. on the Comex in New York.
Gold for immediate delivery climbed to a record $1,313.45. The price has gained 19 percent this year. The metal headed for the 10th consecutive annual gain, the longest winning streak since at least 1920.
Yesterday, holdings in exchange-traded products backed by gold climbed the most in three months to an all-time high.
The metal has rallied as central banks and governments maintained low borrowing costs and spent trillions of dollars to stimulate their economies. Gold has outperformed global equities, Treasuries and most industrial metals.
“Speculation of additional stimulus measures and its inflationary implications longer term continues to draw investors toward gold and silver,” said James Moore, an analyst at TheBullionDesk.com in London.
Silver futures for December delivery rose 24.5 cents, or 1.1 percent, to $21.952 an ounce on the Comex. Earlier, the price reached $22.075, the highest level since October 1980. The metal has jumped 30 percent this year.
In 1980, the metal reached a record $50.35, a year after the Hunt brothers tried to corner the market.
Platinum futures for January delivery gained $15.90, or 1 percent, to $1,656.60 an ounce on the New York Mercantile Exchange. The price has advanced 13 percent this year.
Palladium futures for December delivery climbed $6.85, or 1.2 percent, to $567.30 an ounce. The metal has climbed 39 percent this year.
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