Gold Soars, Hits $1, 174 An Ounce, As US Dollar Wanes

THE BULLION.

Los Angeles (THEWILL) - Gold futures hit a new all time high on Monday reaching $1, 174 dollars an ounce, boosted by a weaker dollar, inflation and global anxiety occasioned by Iran’s weekend war display.

Gold is seen as a safe-haven for investors and hedge fund portfolio managers in a global economy that is still shaky and recovering from a recession that almost brought her to its knees.

December contract delivery for the bullion climbed as high as $1, 174 dollars an ounce, but closed at $1, 164.70 dollars, after the Federal Reserve Bank of St. Louis boss, James Bullard said the bank should keep buying mortgage backed securities and other assets.

The US dollar index, which measures the performance of the dollar against a basket of other major world currencies, fell 0.45 points or 0.60% to close at 75.13.

Trading at $800 dollars an ounce about 6 months ago, gold has rallied tremendously fuelling speculations that a correction would come before Christmas/end of year.

Some analysts expect the commodity to trade within $800- $900 dollars by January, 2010.