Azerbaijan, Baku, April 8 / Trend /
Gold rose to a record in New York and London as a weaker dollar and concerns about inflation and European debt boosted demand for the metal as an alternative investment, Bloomberg reported.
The European Central Bank yesterday lifted interest rates for the first time in almost three years to quell inflation even as Portugal sought a bailout. The dollar slid to the lowest level since December 2009 against six major currencies. Gold, which typically moves inversely to the greenback, has climbed on fighting in Libya and Japan's earthquake and tsunami last month.
"Inflation expectations are rising," Walter de Wet, an analyst at Standard Bank Plc in London, said today by phone. European debt issues are "certainly adding support. Most of the rally the past few days has been on the back of the dollar weakening."
Gold futures for June delivery gained as much as $15.20, or 1 percent, to $1,474.50 an ounce and traded at $1,472.80 by 8 a.m. on the Comex in New York. Prices are up 3.1 percent this week, the most since December. The metal for immediate delivery in London was 0.9 percent higher at $1,471.56 after reaching $1,473.07.
Gold futures reached a record 21,320 rupees ($483.70) per 10 grams (0.3 ounce) on the Multi Commodity Exchange of India Ltd. The country is the biggest gold consumer.