Gold was fixed in London on Monday afternoon at $429,15 a troy ounce, the highest afternoon fix for the metal since September 9 1988, according to the London Bullion Market Association website.
At 4.35pm, gold was quoted at $428,65 a troy ounce from a New York close of $424,33/oz.
Earlier on Monday, gold touched $430,85/oz, its highest level since April 1 2004 when gold went to $432,10/oz.
If gold breaches $432,10/oz in the near term, it will establish a 16-year high.
“Gold is up on a mixture of the weaker United States dollar, with the market close to the year’s highs set in early April 2004. Gold between $430/oz and $432/oz is going to be very important levels. I see a volatile couple of days ahead,” a Switzerland-based trader said.
“Given the current geo-political situation, the upcoming US elections and a weak US dollar, gold is likely to break through the year’s high of $432,10/oz soon,” he added.
At 4.35pm, the euro was quoted at $1,2776 from $1,2719 late on Friday.
Earlier on Monday, the euro touched $1,2829, its best level since February 18 2004, when the euro went to its $1,2925.
“Once gold is through $432/oz, technical analysis points to a move to $460/oz. I’m continuing to be bullish about gold, but cautious given the large speculative open interest,” the Switzerland-based trader said. — I-Net Bridge