Gold futures on Friday broke through record highs they had set within hours prior, Bloomberg reports.
Analysts attribute the precious metal's strong performance to weaknesses with the U.S. dollar, the U.S. Federal Reserve, and action by the European Central Bank. Gold futures have set record highs each of the past four days, most recently setting $1,476.20 per troy ounce as the top price.
"The Federal Reserve isn't anywhere near an inflation fight as the ECB," Frank Lesh, a trader at FuturePath Trading in Chicago, told the news service. "Gold‘s move is about the weakness in the dollar. Inflation is the buzzword, and it’s the impetus behind the trade."
Shortly after 2:30 p.m. on Friday, gold futures climbed 1.08 percent, a $15.80 increase to $1,475.10 per troy ounce. Silver futures also are benefiting from the economic developments. At 2:30 p.m., silver futures were up 3.02 percent, a $1.193 climb to $40.745 per troy ounce.
"With the monetary base skyrocketing, and with the U.S. dollar falling, gold has to move higher," Dennis Gartman, an economist and the editor of the Gartman Letter of Southeast Virginia, said.
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