Gold soared to a two-week high on Monday driven by the prospect of further U.S. interest rates cuts, while platinum hit new highs on supply concerns in the world's main producer, South Africa. Spot gold which rose to $828.70 an ounce is again close to a 28-year high of $845.40 touched earlier this month. Gold has recovered by more than 7% from the low level of $772.60 touched on November 20, when stocks lost ground and encouraged investors to book profits from bullion's multi-year highs.

Platinum touched $1486 before sliding to $1,477/1,482 an ounce as firmer oil and a bearish dollar also encouraged investment funds to buy. In currencies, the euro was near record peak of $1.4968, the dollar touched 108.54 yen while the Crude oil was close to the all time high, $99.29. Japanese precious metals futures rallied after traders returned from the long weekend. Palladium edged up to $354/358, while silver was last quoted at $14.71/14.76 in New York. Dealers said gold was on track to retest $850, an all-time high hit in January 1980, as record-high crude oil prices boosted its role as a hedge against inflation, with the possibility of Federal Reserve rates cuts in December positioning it as an alternative investment.

 

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