Gold Posts Another Gain
Gold prices lifted yet again Wednesday as the greenback shifted lower in value and the cost of crude oil soared to another record.
Benchmark bullion futures gained $8.40 to settle at $928.60 an ounce on the Comex division of the New York Mercantile Exchange.
The
SPDR Gold Trust
(GLD) - Get Report
, which holds bars of pure bullion, was tacking on 0.9%.
"The U.S. dollar's prospects on the whole remain bleak and any short-term rebounds will be met with heavy selling," says Peter Spina, hedge fund advisor at
GoldSeek.com
.
Over time lower values for the U.S. currency tend to result in higher prices for dollar-denominated assets such as gold, and the record price of crude oil raises concerns over inflation, which many believe is in large part fueled by energy costs.
"The possibility is quickly growing for gold to revisit the four-figures area
over $1,000 an ounce," Spina adds.
In the foreign-exchange market, one euro was buying $1.577 Wednesday vs. $1.567 the previous day. One dollar was trading for 103.2 Japanese yen down from 103.6 yen previously. The British pound was selling for $1.969 vs. $1.967.
The
CurrencyShares Euro Trust
(FXE) - Get Report
and the
CurrencyShares Japanese Yen Trust
(FXY) - Get Report
were rising 0.8% and 0.3% respectively. The
CurrencyShares British Pound Sterling
(FXB) - Get Report
was up 0.2%.