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Gold shoots to record high on doubts about greenback

The price of gold soared to a record high above US$1,060 an ounce in the past week, spurred on by a weakening dollar and doubts about the greenback’s future as the world’s leading reserve currency.

PRECIOUS METALS: The price of gold struck a series of all-time highs this week, beginning on Tuesday, as the dollar slid on a reported plan by Gulf states to stop using the greenback for oil trading.

Gold hit US$1,061.52 an ounce on Thursday, beating the all-time peak of US$1,032.70 struck in March last year.

“Gold prices hit an all-time high as the dollar weakened,” Barclays Capital precious metals analyst Suki Cooper said.

“The dollar weakness appears to be related to ... [reported] secret talks about oil being priced in a basket of currencies including gold rather than the dollar, which has added to concerns about the future role of the dollar in international financial markets,” she added.

By late Friday on the London Bullion Market, gold surged to US$1,051.50 an ounce from US$1,003.50 a week earlier.

Silver jumped to US$17.63 an ounce from US$16.21.

On the London Platinum and Palladium Market, platinum rose to US$1,337 an ounce at the late fixing on Friday from US$1,269.

Palladium advanced to US$323 an ounce from US$292.

OIL: World oil prices rallied as the dollar weakened on the report that Gulf states considered dropping the greenback for oil transactions.

By Friday on the New York Mercantile Exchange, light sweet crude for delivery in November jumped to US$71.89 from US$69.77 a week earlier.

On London’s Intercontinental Exchange, Brent North Sea crude for November advanced to US$70.14 a barrel from US$67.93 a week earlier.

BASE METALS: Base metals prices rallied, boosted by a falling dollar. Aluminum won additional support on Alcoa’s results, while tin was in focus after a single investor bought up more than 90 percent of the metal traded in London.

By Friday on the London Metal Exchange, copper for delivery in three months jumped to US$6,260 a tonne from US$5,853 a week earlier. Three-month aluminum gained to US$1,895 a tonne from US$1,812. Three-month lead increased to US$2,260 a tonne from US$2,100. Three-month tin advanced to US$14,700 a tonne from US$14,175.
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