Gold for June delivery added $4.90 to close at $1,503.80 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has hit another record at $1,509.60 while the spot gold price was up $4.30, according to Ktico's gold index.
Silver prices exploded $1.59 higher to close at another 31-year record of $46.05 an ounce, pushing the gold/silver ratio down to the 32 level. The lower the ratio goes the faster silver rallies versus gold. David Morgan, founder of Silver-Investor.com, thinks the ratio could hit 16 while Eric Sprott of Sprott Asset Management is on record as saying the ratio could hit single digits.
Gold rallied for a fifth straight day as the U.S. dollar index continued to tank losing 0.31% to $74.14 at its lowest level since November 2009 and is now trending towards it 2008 level of $72.A weaker dollar makes gold and silver cheaper to buy in other currencies and dollar weakness also highlights the dollar-backed commodities' appeal as safe haven assets. Mark Arbeter, chief technical strategist at Standard & Poor's Equity Research wrote in a recent note that the dollar could sink to its "2008 bear market lows ...
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