Sunday, 7 November 2010

Gold bullion threatening $1400 milestone

FXstreet.com (Barcelona) - Gold futures are setting new historic records for a second-consecutive day, as investors rush to the safety of the metal in the wake of the Fed´s QE2 announcement. In early trading over NY, the most active gold contract for December delivery trades at $1396.80 a troy ounce as it leans toward the $1400 milestone.

The safe-haven appeal of gold has been markedly amplified since Wednesday´s Fed announcement, due to the fact of a weakening US dollar. Today, the yellow metal dipped over Asia and Europe on profit-taking as well as a better-than-expected US NFP report which gave the greenback some breath. Nonetheless, the upside momentum is overshadowing the upbeat employment report as demand remains high.

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