|ORO Y PLATA INTERNACIONAL S.A.
Gold hits record, silver soars on dollar
Gold rose to a record high for a fourth straight day and
silver surged on Friday, as a weaker dollar, the prospect of
a U.S. government shutdown and inflation worries lifted
precious metals in a broad commodities rally.
8/4/11. Gold notched its biggest weekly gain in four months, drawing
support from renewed euro zone sovereign debt fears amid Portugal's
financial crisis and inflation jitters as crude oil and corn hit new highs this
Bullion broke above key resistance on technical charts and could target
above $1,500 an ounce. The metal has risen more than 10 percent since
late January when political unrest began to flare in the Middle East and
"With the expected future inflation being higher in this low interest rate
environment, investors are more inclined to have some contributions to
commodities as an inflation hedge," said Hakan Kaya, commodities
portfolio manager at Neuberger Berman, which manages about $190
billion client assets.
Spot gold rose as high as $1,474.60 an ounce and was later up 1 percent at
$1,471.74 an ounce by 2:53 a.m. EDT. Bullion gained 2.5 percent this week
for a fourth straight weekly gain. U.S. gold futures for June delivery settled
up 1 percent to $1,474.10.
Gold remained far below its all-time inflation-adjusted high, estimated at
almost $2,500 an ounce set in 1980, an era of Cold War tension, oil shocks
U.S. futures activity was sharply below average for a second day, but
analysts said low volume was not detrimental to the metal's bull run.
Gains in other commodities also lifted precious metals, as crude oil futures
soared to their highest since 2008 and the Reuters/Jefferies CRB .CRB
index rose 1.2 percent.
Silver rose 2.4 percent to $40.50 an ounce, just off the session high of
The gold-to-silver ratio -- the number of silver ounces needed to buy an
ounce of gold -- fell to a 28-year low toward 35 on Friday. (Graphic:
"One would expect silver to outperform in this environment because it
bears a higher risk than gold on a volatility basis," Kaya said.
On charts, gold breached important technical resistance at $1,466 an
ounce near Thursday's high, said Rick Bensignor, chief market analyst at
If bullion could hold above $1,466 early next week, it should next target an
area between $1,500 and $1,510 an ounce, Bensignor said.
DOLLAR WEAKNESS UNDERPINS
The dollar's 1 percent slide to a 15-month low against the euro added fuel
to a rally that has taken gold to a series of record highs.