GDX, Gold Futures Hit New Highs

GDX and Gold futures climbed to a record on this morning, as dollar weakness continued to draw buyers into the precious-metals market. Here is the chart of the GDX.

Gold for December delivery, the most actively traded contract, soared to a high of $1,118.60 an ounce in electronic trading on Globex, surpassing Monday’s high of $1,111.70 an ounce. As long as the U.S. dollar is trending down, the gold price is unlikely to soften meaningfully. Longer-term support will be maintained from our belief that the U.S. Federal Reserve will maintain low rates, worries we have over the situation in Iran, and from increased investor interest.