Gold futures rose to a record $1,530.30 an ounce on speculation that the Federal Reserve will be slow to raise U.S. borrowing costs, weakening the dollar and boosting the appeal of the metal as an alternative asset.
The dollar fell to the lowest since December 2009 against the euro after the Fed kept borrowing costs at a record low and said it would continue $600 billion in bond purchases through June. The European Central Bank this month began raising rates to stem inflation.
“This move is about the dollar,” said Frank Lesh, a trader at FuturePath Trading LLC in Chicago. “There’s no hint whatsoever of the Fed being close to raising rates, so people are buying gold.”