Gold continues to climb to new record levels in New York and London as investors continue to see the metal as an alternative to a weakening dollar.
The dollar headed for a third weekly drop against the euro amid speculation the Federal Reserve will take additional steps to shore up the faltering U.S. recovery, and before a manufacturing report this morning that is anticipated to show manufacturing stayed relatively the same in the U.S. Gold typically moves inversely to the dollar, and holdings of the metal in exchange-traded products are at an all-time high.
With the dollar still dropping and another batch of quantitative easing being expected as the Fed buys up more debt, gold is active as a safe haven for investors.
Gold futures for December delivery added as much $9.70, or 0.7%, to $1,319.30 an ounce and traded at $1,316.40 at 8:05 a.m. on the Comex in New York. Bullion for immediate delivery in London was 0.5% higher at $1,315.18 after reaching $1,317.42.
