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Gold stands above 1,500 dollars per ounce

04-22-2011 15:00 BJT

CHICAGO, April 21 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange settled above the key mark 1,500 U.S. dollars per ounce on Thursday, as concerns over debt and inflation boosted investment demands. The weakening dollar gave additional push.

The most active gold contract for June delivery gained 4.9 U.S. dollars, or 0.33 percent, to 1,503.8 dollars per ounce.

Market analysts said that sovereign-debt concerns in U.S. and Europe along with inflation fears provide a good backdrop for gold.

Greece's 2-year and 10-year government-bond yields reached records amid speculation the nation won't be able to avoid restructuring its debts.

Besides, the cut in U.S. credit prospect also affected confidence in the U.S. economy. Standard & Poor's earlier this week revised its debt outlook for the U.S. to negative from stable. The U.S. Treasury Department projects the government could reach its debt ceiling limit of 14.3 trillion dollars as soon as mid-May.

As a result, the U.S. dollar suffered sharp drop in the recent trading. The dollar index even fell 0.6 percent to 73.898 on Thursday, the lowest since August 2008, which offered additional support for gold.

A trader noted that the key element determining gold's near- term direction right now is the U.S. dollar.

Moreover, the global inflation is worsening amid hot-red hikes in such commodities as crude oil and agricultural products, which also pushed more funds to buy gold as a hedge against inflation. The crude oil price has hiked for three consecutive sessions in a row and hit 112.29 dollars per barrel on Thursday.

Gold prices have increased for five consecutive trading days and posted a record 10 times this month.

Silver for May delivery also hiked 1.598 dollars, or 3.6 percent, to 46.059 dollars per ounce, a fresh 31-year record. July platinum also increased 17.9 dollars, or one percent, to 1,820.7 dollars.

Editor:Yang Jie |Source: Xinhua

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