Gold Hits New All-Time High, Yamana Close to 52-week High
Source: http://thestockmasters.com/node/1743Posted on Tuesday, October 6th, 2009 | In Gold Markets
Gold notches a new all-time high today, taking out the previous high of $1,033.90 (Mar. 17, 2008), and is currently +1.9% to $1,037. That has helped moved Yamana Gold (NYSE:AUY) shares up 12% in two days, closing in on $12 a share on heavy volume.
Yamana shares started Monday (10/6) at $10.17, today they hit $11.44 but have backed off to around $11.20 a share. Volume for Yamana (AUY) has been screaming, we are at 2 PM EST and already 20.8 million shares have passed hands pushing up shares 7%.
The dollar fell after a newspaper report – later denied – said that Gulf nations wished to replace the greenback as the main oil currency.
Dollar Influence
Now a lot of investors are buying gold because they are concerned about the impact of higher inflation
Analysts said concern about the possibility of higher inflation in the US as its economy recovers was another factor in lowering the price of the dollar, further boosting the appeal of gold.
The last time the spot price of gold hit a new high was in March 2008, when it reached $1,032.80 an ounce.
Analysts said the price of gold could rise still further towards the end of the year if the dollar remained weak.
The price of gold is also typically strong in the October to December period because of the higher demand for jewellery in the run-up to Christmas and the Indian festival of Diwali.
Demand for gold is currently strong in India, and Indian communities around the world ahead of the festival of lights, which this year falls on 17 October. This is because gold jewellery is typically given as presents.
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Christmas, Festival of Lights, Gold Markets, India, main oil currency, United States, USD, Yamana Gold
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