Gold prices pass $1,140 per ounce

The price of gold hit yet another new high Monday, going to $1,140.70 per troy ounce during the session in New York, but in inflation-adjusted dollars its prices is still far below the record set on 21 January 1980 at $825.50 per troy ounce, which in today’s dollars works out to $2,163.62 per troy ounce.

December gold ended up $22.70 to $1,139.40 per troy ounce in New York on a weaker dollar and gains in equities markets as some analysts blamed the recent steep rise in prices to the buying of gold by the governments of India and China, which are increasing their inventories of the precious metal.

Analysts also say that prices will continue to increase as long as the US Federal Reserve continues its present economic policies.

Among other precious metals, December silver added $1.02 to $18.40 per troy ounce and January platinum gained $55.90 to $1,444.60 per troy ounce.

Prices for copper and other base metals were significantly higher as well.

March copper added 13 cents to $3.13 per pound in New York trade, while three-month copper gained $335 to $6,855 per tonne in London, to its highest in over thirteen months, as investors worried about weather in China, where the heaviest snow in over half a century caused concerns that smelters could be affected.

The gains came even though stockpiles of copper in London Metal Exchange-monitored warehouses added 2,825 tonnes to 406,450 tonnes during the session.

Nickel inventories also rose, by 132 tonnes to 131,880 tonnes, near a 15-year high, but the metal used in making steel still added $600 to $16,800 per tonne, while tin gained $235 to $14,985 per tonne, lead was $115 higher to $2,390 per tonne, zinc was up $105 to $2,174 per tonne and aluminium gained $90 to $2,030 per tonne.