Immediate-delivery gold gained as much as 0.2 percent to $1,530.22 an ounce, and traded at $1,529.45 at 9 a.m. in Singapore. Bullion for June delivery in New York rose as much as 0.9 percent to $1,530.80, an all-time high.
Fed Chairman Ben S. Bernanke signaled yesterday in his first press conference after a policy decision that the U.S. central bank will maintain record monetary stimulus. The central bank kept its target rate for overnight lending between banks at zero to 0.25 percent.
“Real interest rates remain exceptionally low and government borrowing high,” Walter de Wet, an analyst at Standard Bank Plc, wrote in a note. Real interest rates compare lending rates with inflation. “These two factors are core to our bullish view on gold.”
The dollar fell beyond $1.48 per euro for the first time since December 2009 after the Fed’s pledge. The Dollar Index, which tracks its value against six counterparts, declined for an eighth day to the lowest level since 2008.
Gold has gained 7.7 percent this year, extending a decade- long advance, the best run since at least 1920, as the prospect of currency debasement and accelerating inflation fuel investor demand. Fighting in Libya and sovereign-debt turmoil in Europe have also contributed to the rally this year.
Cash silver strengthened 1.1 percent to $48.3675 an ounce, gaining for a second day and approaching the record $49.79 reached on April 25. Palladium climbed 0.4 percent to $770.75 an ounce, while platinum rose 0.2 percent to $1,829 an ounce. ( Source www.bloomberg.com) For the latest updates PRESS CTR + D or visit Stock Market news Today
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