It appears more and more likely that Federal Reserve chairman Benjamin Bernanke will engage in another round of asset-buying to stimulate growth in the economy – and that prospect is lighting a fire under metals futures across the board.
Gold set yet another record, as Comex December gold futures rose $6.10 to $1,346.40 per troy ounce, after earlier going as high as $1,351 per troy ounce. Silver futures rose as well: The December contract gained 17.3 cents to $22.91 per troy ounce after reaching $23.09 per troy ounce.
Base metals had a good day, too: Comex copper futures for December delivery rose 3.1 cents to $3.7575 per pound, driven more by the slumping dollar than by demand concerns.
The greenback "will fall as people perceive that the Fed will do anything to fuel growth," Mari Kooi, the chief executive officer of London's Wolf Asset Management International, told Bloomberg. "Commodities are going to be a hot thing."
Kooi projected that gold prices would hit $2,200 per troy ounce in the next year or so.
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