NEW YORK (Reuters) U.S. gold futures closed at a 16-1/4-year peak above $450 an ounce Monday as the market caught up with higher bullion following the U.S. Thanksgiving Day, while silver ended at a seven-month peak.
December delivery gold on the New York Mercantile Exchanges COMEX division settled up $4.40 at $453.70 an ounce, within a range of $449.30 to $454.80, which marked the loftiest level for futures since July 1988.
February gold gained $4.30 to $455.80 in last-ditch contract rollover from the December contract before Tuesdays first notice day for metal delivery.
Refco analyst Tom Boustead said fund buying in New York after a four-day market holiday hurled gold above $450 amid improved sentiment as the dollar held near a record low versus the euro.
The market «has upward momentum until we see something happen in the currencies that would shift sentiment,» Boustead said. «Gold looks a little overbought but I dont think that matters until theres a reason to take profits.»
On Friday, when U.S. markets were shut, bullion touched a 16-1/4-year high at $455 and the euro hit a record at $1.3329.
Analysts said gold was looking attractive to investors as a safe haven against a backdrop of a declining dollar, rising oil prices and heightened geopolitical tensions.
According to an informal poll of London analysts released on Friday, gold was destined to reach $500 an ounce in 2005 on expectations of further dollar weakness, but may correct lower first.
Boustead said he viewed futures as in a range between support at $450 and resistance at $460 for now.
Spot gold last was quoted at $453.30/4.05, versus Europes close Friday at $452.25/3.00. Mondays afternoon fix in London was at $451.25.
The euro dipped to around $1.3274 by midafternoon.
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