• Print
• E-Mail

"I can't see prices pulling back to a massive extent, even though physical gold demand appears to be softer."

BROAD-BASED RALLY

The Reuters-Jefferies CRB Index, which tracks prices of 19 commodity futures, hit a record high. The index has gained almost 8 percent since February 13, powered by a run-up in key commodities such as oil, gold and wheat.

U.S. gold futures for April delivery also hit a record high of $967.70 an ounce before falling to $961.

Investment into exchange-traded funds continued. The latest data showed gold held by New York-listed StreetTRACKS Gold Shares, the world's largest gold-backed ETF, hit a record high of 639.44 tonnes -- a jump of more than 30 percent in the past 12 months.

"Despite the increased likelihood of IMF (gold) sales, its seems investors are more concerned with the threat that inflation/recession poses," TheBullionDesk.com said in a note.

"And with two of gold's key driving forces -- the dollar and oil -- now into uncharted territory themselves, it seem inevitable that gold will challenge new highs closer to $1,000."

The United States Treasury has reversed its opposition to the sale of a limited portion of the IMF's more than 3,000 tonnes of gold stocks, the world's third-largest holding.

In industry news, South Africa's Harmony Gold said two workers had been killed in an earth tremor at its Elandsrand mine, and that production had been stopped at the section where the incident took place.

Peruvian metals producer Buenaventura said a strike hit its Uchucchacua mine, and a union official said workers at 3 other mines had joined the walkout.