Gold Futures Climb to Within Fraction of $1,900

Gold futures climbed to within a fraction of $1,900 per ounce for the first time on Monday, sparked by QE3 speculation and concerns over the state of the U.S. and euro zone economies.

COMEX gold futures, per the December contract, hit a new all-time record high of $1,899.40 per ounce as the open-pit session came to a close.  Gold futures quickly pared their gains, but settled higher by $39.70, or 2.1%, at $1,891.90 per ounce.

In a note to clients, analysts at Commerzbank wrote that “This psychologically important mark is likely to be tested already soon in the current market climate and is probably not a serious hurdle. Uncertainty and nervousness are still high among market players.”

The latest new record in gold helped fuel a broad-based rally in precious metals.  Silver surged $1.37, or 3.2%, to $43.81 per ounce, its highest level since May 2, 2011.

Platinum advanced $28.50, or 1.3%, to a three-year high of $1,903.40 per ounce.