Gold futures and spot gold ready to revisit $800 - Wednesday 21st November 2007
Gold futures were back on the rise today as dollar weakness hit new depths and sent the metal spiralling up in price.
After experiencing a recent drop in value on the back of profit-takers selling gold, futures rebounded back toward the $800 per ounce mark, surging as much as $16.50.
The euro hit new highs against the dollar as the greenback saw its value affected by anticipation of further interest rate cuts – with pre-emptive traders selling off the dollar in expectation of inflationary woes and a drop in its value.
Two recent Fed rate cuts have already taken their toll on the beleaguered dollar, but rumors of a third could have the biggest effect yet on gold – with its perceived alternative asset value.
While gold futures are shooting up, spot gold has also experienced a positive response to dollar concerns, rising steadily through the day to plateau just below the $795 mark.
Gold staged a remarkable rise through the Autumn, rising as high as $845.58 per ounce in early November, but has since dropped away in value, a fall that looks to have been stemmed by rumors of further rate cutting.
After experiencing a recent drop in value on the back of profit-takers selling gold, futures rebounded back toward the $800 per ounce mark, surging as much as $16.50.
The euro hit new highs against the dollar as the greenback saw its value affected by anticipation of further interest rate cuts – with pre-emptive traders selling off the dollar in expectation of inflationary woes and a drop in its value.
Two recent Fed rate cuts have already taken their toll on the beleaguered dollar, but rumors of a third could have the biggest effect yet on gold – with its perceived alternative asset value.
While gold futures are shooting up, spot gold has also experienced a positive response to dollar concerns, rising steadily through the day to plateau just below the $795 mark.
Gold staged a remarkable rise through the Autumn, rising as high as $845.58 per ounce in early November, but has since dropped away in value, a fall that looks to have been stemmed by rumors of further rate cutting.
Goldbug, 21 Nov '07
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