Gold exceeds $1,000 barrier
Weakness in the US dollar helped gold soar through the psychologically key level of $1,000 an ounce on Tuesday, after coming close to the mythical barrier last week.
Gold for September delivery was up $12.00, or 1.21%, to $1,006.90 an ounce on the Comex division of the New York Mercantile Exchange.
This is the first time the yellow metal has passed the $1,000 mark since February 20 this year and the highest price since March 2008. Gold reached a record $1,032.70 in March 2008.
Gold momentum has been strong lately following a weaker greenback and increased uncertainty over the economic recovery. Last week, gold rallied for four consecutive days, reaching an intraday high of $999.50 an ounce.
Analysts said it is now possible for gold to reach the next technical level of $1,040 an ounce.
Adrian Ash, head of research at BullionVault, says gold has built a solid base over this summer, setting up what could now prove to be another strong autumn rally.
“That’s the gold markets most typical seasonal pattern since it was cut loose from backing the value of dollars four decades ago," he adds. "On average since 1969, the six months starting 1 September have delivered 10%.”
BullionVault reports that its daily website traffic and new account registrations doubled during the first week of September.
Ash explains: “Gold’s gone through $1,000 while no one was watching. The lack of media attention ahead of this jump marks it out from the two previous attempts. There’s also been only a quiet upturn in private investment as well, rather than the panic coin-buying of March 2008 and February 2009.”
The greenback fell 0.8% to 92.15 yen on Tuesday.