Golden horizons for record-busting futures

Falling dollar value has kept spot gold and gold futures above the $800 mark today (November 5th), allowing the precious metal to maintain the rally it staged late last week.

Gold for December delivery was the most impressive grower on Friday New York trading, rallying a full $14.80 to finish above $808, while today's gold investors have not been as bullish. However, despite a drop, spot gold has remained around the $801-$802 level.

Consolidating its value above the $800 per ounce level has been a mark of dollar weakness, with investors outside the US looking to sell the floundering greenback and buy gold, with its safe-haven monetary value.

Zachary Oxman, a senior trader at Wisdom Financial, told Marketwatch: "The commodities markets in general are staging a huge rally today.

"I believe that a huge wave of technical buying pushed by traders, funds, purchases into the gold ETF and the continued fall of the US dollar are all pushing gold and silver higher today."

With the dollar falling to fresh lows against the euro on Friday, the gold futures rally and its closure above $800 represented another 28 year peak attained by the precious metal.