Gold News

05/07/07: Gold price lifts as dollar declines

Gold prices lifted by around $2 an ounce today (Thursday, July 5th) as the dollar weakened and oil prices increased, Reuters reports.

Bullion was at $656.20 an ounce just after midday, up from $654.40 late on Wednesday night.

Dresdner Kleinwort analyst David Holmes commented: "The key thing is that the dollar is very weak and the oil market is very strong … There is some reluctance to buy at the $659 level and equally nobody wants to go out and attack on the downside because there are favorable things in the background."

Frank McGhee of Integrated Brokerage Services LLC in Chicago told Bloomberg: "It's been all about the dollar. If the euro continues to strengthen, that will favor gold."

Gold futures for delivery in August increased by 0.3 per cent to $657.50 per ounce on the New York Comex.

The market largely ignored announcements by European and UK central banks regarding interest rates.

The price of gold often moves in the opposite direction to the dollar.
ADNFCR-1047-ID-18202766-ADNFCR

See all articles by Gold Bug here.

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.

Follow Us

Facebook Youtube Twitter LinkedIn

 

 

Market Fundamentals