Reuters reports that gold reached a new record of $1,397 an ounce today, with silver managing a new 30-year high of $26.89 an ounce. Gold had its largest single-day rise in six months yesterday. The spike is attributed to the Federal Reserve’s most recent round of quantitative easing.
Citi analyst David Thurtell explains, “The key implication of the QE measures is that major currencies—particularly the US dollar—are likely to lose value relative to ‘alternative’ currencies such as gold. Gold’s traditional disadvantage, no yield, is largely reduced in a zero interest rate world. Its major advantage, limited supply, is massively enhanced.”
Palladium also rose as high as $697 an ounce, platinum $1,762.15 an ounce.