Bloomberg Gold Rises to Record as Falling Dollar Boosts Investment Demand

Nov. 9 (Bloomberg) -- Gold futures climbed to a record for the second straight session as the slumping dollar spurred demand for the precious metal as an alternative investment.

The greenback slid to a 15-month low against a basket of six major currencies after the Group of 20 industrial nations maintained economic stimulus steps. Gold has climbed 25 percent this year, while the dollar is down 7.7 percent. Last week, the Federal Reserve held U.S. interest rates at historic lows.

“It looks like gold will carve out new highs until further notice,” said Michael Guido, director of hedge-fund sales at Macquarie Capital USA Inc. in New York. “The Fed made it quite clear that rates are going nowhere. The dollar is sinking. The bullish holders of gold are adding positions when the market makes a new high.”

Gold futures for December delivery rose $5.70, or 0.5 percent, to $1,101.40 an ounce on the New York Mercantile Exchange’s Comex division. Earlier, the price reached a record $1,111.70. Gaining for six straight sessions, and setting records in four of the past five, gold’s rally this month is the longest since March 2008. more...