Gold is heading for its 10th consecutive annual gain, thelongest winning streak since at least 1920. Photographer: Adrian Moser/Bloomberg
Gold futures rose to a record $1,300 an ounce in New York as investors soughta protection of wealth and an alternative to a weakening dollar. Bullion tradedat an all-time in London and silver reached the highest price since 1980.
The dollar headed for a weekly drop against the euro on concern the FederalReserve is moving closer to boosting debt purchases, while European equitiesdeclined. Gold, which usually moves inversely to the greenback, advanced to arecord for the fourth day this week. Silver, which is used in industrialapplications, headed for a fifth weekly advance in London.
“Gold is showing there is no confidence in the dollar,” said BernardSin, head of currency and metal trading at bullion refiner MKS Finance SA inGeneva. Recent “data has been showing signs of a troubled economy. That’s whywe’ve seen this huge buying for investors as a safe haven.”
Gold futures for delivery in December added as much as 0.3 percent to $1,300an ounce and traded at $1,299.40 at 5:16 a.m. on the Comex in New York. Gold forimmediate delivery advanced 0.5 percent to a record $1,298.38 an ounce and waslast at $1,298.05.
Gold, up 18 percent this year in London, is heading for its 10th consecutiveannual gain, the longest winning streak since at least 1920. Bullion hasoutperformed global equities, Treasuries and most industrial metals, promptingrecord investments in gold-backed exchange-traded products. The metal rallied ascentral banks and governments maintained low borrowing costs and spent trillionsof dollars to stimulate their economies.
Silver for immediate delivery climbed as much as 1.2 percent to $21.3875 anounce in London and was last at $21.3425.