Weak dollar keeps gold high - Tuesday 15th January 2008

Gold prices remained high today (January 15th) following the breach of the historic $900 mark yesterday.

Prices reached $910.70 per ounce in New York earlier today, helped by the continuing weakness of the dollar as analysts predicted interest rates would be cut by 0.5 per cent, Reuters reports.

There are also fears over possible lower-than-expected profit reports from some of the biggest banks in the US later this week.

"We are going to see a number of results coming out from financial institutions and the market would be watching them very carefully," commented Jeremy East of Standard Chartered Bank.

The US dollar fell to a record low against the euro earlier today, as well as reaching its lowest point against the yen since 2005.

Alan Ruskin of RBS Greenwich Capital Markets told Bloomberg that the dollar could go even lower against the yen in the next four weeks.
Goldbug, 15 Jan '08

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.