Gold: Another Record High at $1,374

From the UK Telegraph:

The price of gold rocketed to another record high on Wednesday, powered by the weakening dollar after the US Federal Reserve signalled that it would consider more pump-priming stimulus measures.

The precious metal hit $1,374.35 an ounce at about 4pm on the London Bullion Market.

"Once again gold dominates the headlines, with yet another new record high," said Rajesh Patel, head trader at trading firm Spread Co in London.

"The catalyst this time? The minutes from the 21st September FOMC [US Federal Open Market Committee] released yesterday gave a pretty clear indication, not that it was a surprise to anyone really, that a resumption of QE [quantitative easing] is 'appropriate before long'."

In foreign exchange deals on Wednesday, the European single currency topped $1.40 as the US currency came under pressure from the prospect of further monetary easing.

A faltering greenback makes dollar-denominated gold cheaper for buyers holding stronger currencies, pushing up demand for the metal and eventually its price.

Minutes from last month's FOMC meeting had showed that the US Federal Reserve anticipated that additional stimulus might be needed soon to prop up a slowing economic recovery.

"Such an indication accorded with the members' sense that such accommodation may be appropriate before long, but also made clear that any decisions would depend upon future information about the economic situation and outlook," the minutes read.

That signal fired up expectations the Fed would soon pump money again into the economy through major asset purchases, a measure known as quantitative easing.