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Gold futures breach $1,000-mark as the dollar declined for the 3rd day

September 8, 2009

Gold futures breached the $1,000-mark for the first time since February, as the dollar traded lower for the third day in a row, and inflation worries that boosted the demand for the precious metal as a safe haven investment option.

Gold for December delivery touched exactly $1,000 on the Comex division of the New York Mercantile Exchange, taking this year’s rise to 13%. Spot gold rose to $998.25 an ounce. Gold is set for a ninth yearly gain.

Gold, which last topped $1,000 on February 22, rallied last week amid prospects for falls in stock markets and worries about inflation, with central banks pumping money into their economies to help fight the global recession.

The world’s largest gold-backed exchange traded fund, the SPDR Gold Trust, said holdings stood at 1,077.63 tonnes as of September 4, down 0.38 tonnes or 0.04% from the previous business day.

Among other precious metals, silver for immediate delivery gained 0.7% to $16.45 an ounce, platinum rose 0.4% to $1,265 an ounce and palladium shed 0.3% at $293.25 an ounce.

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