11/07/07: Gold reaches one-month high

The price of gold rose to a one-month high today (July 11th), as the dollar slumped and prompted more investors to consider bullion.

Over the past month gold has put on 1.8 per cent, Bloomberg reports, and the dollar has declined by around three per cent to a new low against the euro.

"Gold has grossly underperformed this move in the dollar," said Societe Generale analyst Stephen Briggs. "Gold has picked up in the last two or three days because of the latest slump in the dollar."

Gold for immediate delivery rose by 85 cents to $664.15 an ounce at lunch time in London, after peaking at $666.30 - the highest level since June 7th. Silver also advanced, hitting a high of $13.025.

Meanwhile, the dollar traded at $1.3769 against the euro, having reached an all-time low against the European currency of $1.3787.

Factors contributing to the success of precious metals include worries that the US subprime mortgage market may spill out into the wider US economy and have detrimental effects.