US gold futures rallied to record highs on Thursday for a fifth straight session and silver surged, as the dollar index tumbled for a third day toward an all-time low, prompting investors to buy bullion as a currency hedge. COMEX June gold futures settled up $4.9 at $1,503.8 an ounce. Ranged from $1,500.4 to $1,509.6 an ounce - a record.
Gold benefits as a hedge against US currency depreciation, as the dollar fell broadly for a third straight day as record low interest rates and the crushing weight of the US budget deficit pushed it closer to an all-time trough against major currencies. The dollar is not the safe haven in view of the difficulty the US government is having in resolving its budget deficit, and gold is benefiting from that, said Leo Larkin, metals equity analyst at Standard & Poor's. US commodity markets will be shut on Friday for the Good Friday holiday. However, the CFTC Commitment of Traders report is still scheduled to be released at 1930 GMT Friday.
Spot gold rose 0.6 percent to $1,507.21 an ounce by 3:22 pm (1922 GMT), after hitting a record $1,508.75 an ounce. London afternoon gold fix was at $1,504 an ounce. COMEX May silver ended up $1.598 or 3.6 percent at $46.059 an ounce on strong speculative buying. Range extended from $45.060 to $46.690 an ounce. Spot silver gained 2.7 percent to $46.44 an ounce. London silver fix was at $46.26 an ounce.
NYMEX July platinum finished up $17.9 or 1 percent at $1,820.70 an ounce on commodities rally. Spot platinum rose 1.2 percent to $1,813.24 an ounce. NYMEX June palladium closed up $10.15 or 1.3 percent at $769.05 an ounce, following platinum. Spot palladium gained 2 percent to $766.97.
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