Gold Declines As The Dollar Gains Strength
Gold fell to the lowest levels in 6 1/2 weeks as news that increased home sales boosted the U.S dollar. The stronger dollar pressured metal prices overall into a decline, however the drop was stalled due to bargain hunters. Volume is expected to be mild for the duration of the holiday trading week
On the New York Mercantile Exchange’s Comex division gold for December delivery fell $20.10, or 1.8%. (To read more)
Gold Prices Have Soared to Record Highs
With all the printing of money going on around the world gold investing has become the ultimate safe haven for a hedge against weakening currencies and inflation.
India’s central bank has just purchased 200 tonnes of gold from the International Monetary Fund. The 6.7 billion dollar purchase surprised the markets and was the biggest single central bank purchase over such a short period over the last 30 years.
The IMF plans to sell about 400 metric tonnes of gold this year in order to increase its finances and increase lending to developing countries.
Gold Price Per Ounce hits Near Record of $1,150 oz
Today gold prices hit a record high of $1,147.45. This coincides with a weakening of the U.S dollar with the news from the Federal Reserve that interest rates may not rise again until 2012. Major concerns with a sluggish U.S recovery combined with possible inlation is providing support for gold.
“I think what we’re seeing is gold is surprising most people in the market. It’s rising faster than the dollar is falling, so it’s got its own drivers now,” said Rebecca Patterson, head of global foreign exchange and commodities at J.P. Morgan Private Bank.
An additional factor that helped fuel gold prices today was the news that John Paulson an influential hedge fund manger is using 250 million of his own capital to launch a new gold fund.
