Gold strides onto record turf again

The precious metal continues its streak as the dollar remains weak and inflation concerns persist.

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By Ben Rooney, staff reporter


NEW YORK ( -- Gold rhit another record on Tuesday as investors remained concerned about the threat of inflation.

December gold rose $7.50 to settle at $1,065 an ounce.

Earlier in the session, gold rose to a high of $1,069.70, toping the previous intraday record of $1,062.70 an ounce on Oct. 8.

Gold has been on a record-breaking run since prices rose firmly above $1,000 an ounce last month. Many analysts expect the rally to continue into next year.

"We've had a weakening dollar today which has definitely been supportive of gold prices," said Carlos Sanchez, a precious metals analyst at New York-based CPM Group, adding that inflation is "a long-term concern" for many investors.

While prices could "taper off" following the current rally, "overall we still expect prices to head higher next year," he added.

The market has been supported by speculation that the weak dollar will continue to depreciate as the U.S. budget deficit swells and investors flock to higher yielding currencies.

The dollar index, a measurement against a basket of currencies, was down 0.3% at 75.90 after hitting 75.74 , its lowest since August 2009.

Gold was also being driven higher by bets that inflation will become a problem in the future. While inflation is currently tame, many traders said consumer prices could spike if U.S. policymakers are slow to reverse monetary and fiscal stimulus measures as the economy recovers.

The government is expected to report Thursday that inflation eased in September from the month prior. The Consumer Price Index is forecast to show a rise of 0.2% in September, compared to a 0.4% rate the month before, according to a consensus of economists surveyed by

Consumer prices excluding volatile food and energy costs, the so-called core CPI, are expected to have risen 0.1%, the same rate of increase as in August.

In addition to the weak dollar and inflation concerns, investors continue to buy gold as a hedge against economic and geo-political uncertainty.

"We still have weak economic conditions, vulnerable financial markets and political concerns," Sanchez said.  To top of page

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