Gold climbs to another record high of $1122 possibly targeting $1300 by year end.

  • The U.S. dollar extends losses hitting fresh 15-month low pushing gold prices as much as 0.7% to $1122 an ounce from yesterday.  Gold priced in dollars tends to move in the opposite direction to the U.S. currency.  Gold has been trending higher for a ninth consecutive day in the best winning run since 1982, on speculation that central banks and investors will step up purchases as the dollar continues to decline.
  • The G-20 nations said at the weekend that interest rates should be kept low and record budget deficits maintained until recoveries take hold.  In contrast, Australia in October became the first Group of 20 economies to raise borrowing costs since the height of the global recession.  Australian employers unexpectedly added workers in October.  The Aussie dollar climbed to its highest level this year on speculation the central bank will raise interest rates in December for a record third straight month.
  • The EURUSD edged higher to fresh two-week high ahead of a report tomorrow that is forecast to show Europe's economy expanded last quarter.  Gross domestic product in the 16-nation euro region expanded 0.5% according to economist's forecasts.

Currency to watch out for: EURUSD & GBPUSD

  • The EURUSD pivot point is at 1.4940 with a preference to enter into long positions at 1.4950.
  • The GBPUSD pivot point is at 1.6625 with a preference to enter into short positions at 1.6615.

Today's calendar and market movers:

  • EU Industrial production month on month expected to drop to 0.4%
  • US Unemployment Claims expected to remain unchanged at 512,000
  • US Crude Oil Inventory expected to add 0.8 million barrels

Stocks:

  • US stocks gain with the Dow and the S&P index closing at 13-month highs on Wednesday on upbeat forecasts from a top homebuilder and data from China pointed to a strengthening global economy.  At the closing bell the Dow closed up 0.4%, the S&P closed up 0.5% and the NASDAQ closed up 0.7%.
  • As of 07:20 GMT the Nikkei is trading at -0.68% and the Hang Seng at -0.90