Gold Rises To Another Record High At $1,118 As The Dollar Continues Its Descent

Gold hit a record high of $1,118 an ounce on Wednesday, stirred by renewed buying the precious should benefit from expectations that an erratic economic recovery will keep U.S. interest rates low. The metal is now poised for more gains, analysts said, with the weak dollar helping gold build on a rally that began last week after the IMF sold 200 tons of bullion to India's central bank, raising the prospect of more official sector buying. The greenback index initially fell a quarter of a percent to a 15 month low and the euro rose to a two-week peak within sight of last month's high of just over $1.5060. Gold is trading at $1,117 as of 21:08pm, GMT with a bullish trend. Gold's Pool-position is 70% Long, meaning that most Finotec clients are buying the precious metal.