Gold kicks back toward $810 - Wednesday 14th November 2007

Gold prices have today (November 14th) shown resilience in the face of recent profit-taking, with no shortage of new investors ready to buy gold and wait for the next bull run.

Prices today rose up toward the $810 mark, a notable improvement after Monday saw the price plunge down from $850 highs as investors cashed in their profits.

Simon Weeks, director of metals sales at the Bank of Nova Scotia, told Reuters: "We're trading either side of $800 at the moment although the market is looking remarkably strong ... being driven by FX moves."

Once again the plight of the dollar made greenback-denominated gold a cheaper option for non US investors and cemented the metal's value as an alternative holder of monetary value.

The dollar fell against the euro and other currencies – as recent cuts in federal rates took their toll and made credit more available.

While dollar weakness is likely to buoy gold in the near future, bullion investors are anxious to ensure the metal consolidates strongly above the $800 level – a prospect made more likely today.
Goldbug, 14 Nov '07

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