[miningmx.com] — SPOT gold hit an all-time peak for a third straight trading session, rising above $1,355 on Thursday on a weak dollar and after Vietnam said it may allow gold imports if prices keep rising.
Spot gold hit record highs in three consecutive sessions, with the latest at $1,355.55. It later eased to $1,354.45.
US gold futures for December delivery hit a fresh record high at $1,356 an ounce, before easing slightly to $1,355.7.
Vietnam’s central bank said on Thursday it would consider granting permits for gold imports if prices in the domestic market rose “unreasonably high”.
“People are going to focus on the fact that Asian physical market will be tight. Last time Vietnam opened door to gold imports, gold went up $20. In percentage term, it could translate into $30 today,” said a Singapore-based trader.
“People have spent the last 24 hours taking profit. We saw a lot of profit-taking in gold and silver through yesterday and this morning in the 1,340s. These guys are looking to buy the dip at 1,320s. If we properly trade through $1,355, they might have to chase it.”
Strong momentum is seen continuing for gold’s bull run, and a new target at $1,365 for the next 24 hours is established, according to Reuters market analyst Wang Tao.
Dollar weakness has been fueling the rally in gold, up 8 percent over the past month, as economic uncertainties and speculation on more monetary easing by central banks drive investors to bullion as an alternative investment.
ADP’s national employment report said US private employers unexpectedly shed jobs in September, reinforcing the conviction that the US Federal Reserve as early as next month will embark on another round of monetary policy stimulus to support the economic recovery.
“By the year-end, most likely $1,400 will not be a difficult target,” said Dick Poon, manager of precious metals at Heraeus in Hong Kong.
“But there is resistance at $1,350 level, and there may be consolidation coming up which may pull gold down $20 to $30. But I’m still bullish.”
Poon added physical demand in the region stayed buoyant in spite of record high prices, thanks to high demand in India’s festive season and from manufacturers that are trying to finish orders before the end of the year.
Spot silver hit a new 30-year high at $23.39 an ounce, and was last quoted at $23.26.
Holdings in the iShares Silver Trust, the world’s largest silver-backed, exchange-traded fund, rose to a fresh record high of 9,944.14 tonnes.
In comparison, holdings in the SPDR Gold Trust remained unchanged for two straight days.
Platinum group metals followed the rally in gold. Spot platinum rose to $1,718, its highest since mid-May. Palladium hit a new nine-year peak at $592.5.