A brand new record was set for the price of gold on Thursday morning with gold trading reaching $1,388 per ounce. This milestone coincides with the dollar hitting a 15 year low versus the Japanese yen. Currently gold prices are rising in relation to all currencies. In the last 60 days alone gold prices have seen a 12% rally in U.S dollars.
Gold continues to be thought of as a safe-haven asset against a continually weakening U.S. dollar. Bullish gold investors are looking at $1400 an ounce as the next resistence area as the dollar continues to remain weak.
Further presure on the dollar is likely to remain as long as the Federal Reserve continues hinting that they will announce additional stimulus spending and monetary easing in November during its next policy setting meeting. Gold prices have risen over 5% in October and many gold speculators are saying FED policy could drive the price above $1420 by next month.
Suki Cooper an analyst for Barclays Capital recently added, “For now, short-term investor interest remains supportive for gold prices testing new highs.”