Gold News

17/07/07: Gold remains up as greenback struggles

The price of gold and silver could rise as the dollar continues to decline and investors look for a safe investment.

At the moment the greenback is weak against the euro, with both the European currency and the price of gold increasing by 4.4 per cent so far this year, Bloomberg reports.

Frank McGhee, a metals trader at Integrated Brokerage Services LLG in Chicago, told the news provider: "Gold is trading tick for tick with the euro. It's a relative interest-rate play."

Gold futures for delivery in August stood at $666.70 per ounce this morning on the New York Mercantile Exchange.

Standard Bank analysts told Forbes: "The key sentiment is still the currency plays occurring in the markets, with the greenback currently on its knees against the euro and the pound."

Oil is near record highs, which is also giving gold a boost as the black gold is seen as a key inflation indicator and high oil prices prompt many investors to turn to precious metals.


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