Gold News

16/07/07: Price of gold steady after five-week high

The price of gold was steady below a five-week high today (Monday, July 16th).

Having risen as high as $668 per ounce, it dipped back down to $667 by 1.52pm GMT, up from $666.60 in New York on Friday, Reuters reports.

"Prices are likely to continue to take their lead from dollar movements this week as our forex strategists note that with sentiment quite bearish, investors are likely to sell the dollar upon any rallies," said Barclays Capital precious metals analyst Suki Cooper.

"The weaker dollar could potentially expose gold prices to further upside risk in the near term, however beyond that gold is likely to face downward pressure as demand eases in the seasonally slow months."

Bullion's current high price is largely down to the weakness of the dollar against the euro, with an increasing number of investors opting for the safe haven of precious metals as they wait to see what happens in the US economy.

Jessica Cross of VM Group believes that the price of gold will remain between $640 and $700 for some time yet.


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