Gold hovers around record levels

Gold, little changed yesterday in London and New York, may advance as a weaker dollar spurs demand from investors seeking to hedge against further declines in the currency.

Gold for immediate delivery rose $3.30, or 0.3 per cent, to $1,058.50 an ounce in London. The metal reached a record $1,070.80 on October 14 and is heading for a ninth consecutive annual advance.

Gold for December delivery added 50 cents, or 0.1 per cent, to $1,059.10 an ounce on the Comex division of the New York Mercantile Exchange.

Gold also little changed in Asia. Gold for immediate delivery traded at $1,054.30 an ounce in Singapore compared with Tuesday's close of $1,055.20 and the all-time high of $1,070.80.

Gold holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, were unchanged at 1,109.31 metric tonnes as of October 20.

Hedge funds and other large speculators are holding a record long position, or bets on higher prices, in US gold futures, data from the Commodity Futures Trading Commission show. The biggest bet among options traders is for gold to reach $1,200 by December.

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