Gold outlook 'positive' despite drop - Friday 21st December 2007

The outlook for gold is relatively positive despite price falls yesterday (December 20th), it has been claimed.

Spot gold fell to $797.30 an ounce in New York yesterday, down from more than $800 an ounce earlier in the week, Reuters reports.

However, an expert told the news provider that gold is performing well despite recent shifts in the exchange rate between the dollar and the euro.

"Considering how much the dollar/euro has moved, gold is holding up reasonably well," commented Stephen Briggs, an economist at SG Corporate and Investment Banking.

Yesterday, a report from the Department of Commerce showed that the US gross domestic product (GDP) rose by 4.9 per cent in the last quarter, increasing at its fastest pace in four years.

Commenting on the figures, commerce secretary Carlos Gutierrez noted that trade now accounts for some 28 per cent of American GDP growth as a result of "booming" real exports.
Goldbug, 21 Dec '07

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