Spot gold hits two-week low - Tuesday 18th December 2007

Gold prices reached their lowest point in two weeks today (December 17th), with trading at one point taking place at $785 per ounce in Europe.

The drop in spot gold followed a $4 fall on Friday and prompted one analyst to speculate that lower-priced physical buying may soon take place on the market.

Commerzbank trader Michael Kempinski told Reuters: "The funds still have interest to keep gold at around $800 and we will probably stay around this level, but if the dollar bounces back even more, then we might see a sell-off before Christmas."

The fallback in prices appeared to be the result of the dollar gaining in strength against the euro on the back of a report suggesting that long-term capital inflows in the US saw a sharp spike during the month of October.

Other major currencies that saw drops against the dollar today included the yen, the Canadian dollar and British sterling.
Goldbug, 18 Dec '07

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