Gold Extends Record Levels Even As Dollar Rebounds

Sponsored Links

Gold continued to soar on Wednesday even as the dollar firmed against its major rivals, extending the momentum trade that has driven the precious metal to a record high unadjusted for inflation.

December-dated gold closed at $1,044.40, up $4.70 on the session. Earlier, the metal extended a record intraday high to $1,049.70.

December gold soared more than $20 yesterday to move above the record intraday levels set in March 2008. When adjusted for inflation, however, gold approached $2,000 in 1980.

The dollar remained near a 12-day low against the euro and also slipped against the British pound. Gold usually moves opposite the dollar because of the precious metal's hedge value.

Investors awaited the unofficial start of earnings season, which begins with Alcoa's report after the closing bell.

In economic news Thursday, initial jobless claims data is due at 8:30 a.m. ET. First-time unemployment claims are expected to fall to 540,000 in the week ended October 3, compared to 551,000 in the prior week.

Wholesales inventories data is coming at 10 a.m. ET. A drop of 1% is expected, compared to a 1.4% drop in July.

(Market News Provided by RTTNews)