Gold Reaches a Record $1,340.50 an Ounce on Monetary Policy Expectations

Before you go, we thought you'd like these...
Before you go close icon

Gold prices reached a record high today as the Bank of Japan cut interest rates and many countries indicated they may boost currency liquidity, Reuters reported.

Sponsored Links

Spot gold increased almost 2%, to $1,340.50 an ounce, while U.S. gold futures for December delivery rose $23.50 to $1,340.30, the wire service said. Spot gold's intraday high of $1,341.20 marked its seventh record price in the last eight trading sessions.

Gold is seen a safe investment as countries look to boost their economies by using monetary policy to increase liquidity and cut borrowing costs. The Bank of Japan cut interest rates, while Federal Reserve officials have said they'd support buying more Treasury bonds to help reduce the cost of borrowing.

Last month, GFMS Ltd. put out an industry report saying that gold would likely surpass the $1,300-an-ounce mark, Reuters reported at the time. While the U.S. has avoided the sovereign-debt crises that have impacted other parts of the world, that may change, potentially causing devaluation of the dollar, Reuters said, citing GFMS Ltd. Chairman Philip Klapwijk.

Read Full Story


S&P 500 2,367.34 3.53 0.15%
DJIA 20,821.76 11.44 0.06%
NASDAQ 5,845.31 9.80 0.17%
DAX 11,820.01 15.98 0.14%
NIKKEI 225 19,107.47 -176.07 -0.91%
HANG SENG 23,925.05 -40.65 -0.17%
USD (per EUR) 1.06 0.00 0.30%
USD (per CHF) 1.01 0.00 -0.22%
JPY (per USD) 112.24 0.05 0.04%
GBP (per USD) 1.24 0.00 0.27%

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners