Gold Futures Surges To Record High

Gold futures received a sharp boost from news that the International Monetary Fund (IMF) sold 200 metric tones to India's central bank for $6.7 billion. The news caught many investors by surprise as China was originally thought to be the eventual purchaser and many thought it would be spread over a period of time. However, it went to India and it went quickly.

Gold traders saw this as a vote of confidence for the precious metal as they pushed prices to another record high. Gold closed $31 higher at $1,085 an ounce on Tuesday. It is a positive sign for the gold market that such a large purchase could take place with gold near record highs. I have to say it is also a sign that foreign countries want to diversify out of the dollar, which might paint an ominous sign for the dollar going forward.