Gold Tops Earlier High, Surges to New 27-Year Peak
Source: Thomson Financial (London) (9/28/07)
Gold exceeded earlier highs, surging to its highest point since 1980 as fund buying accelerated amid record low dollar values and another new peak for oil prices in London.
"Funds are throwing lot of money at gold," said Kitco analyst Jon Nadler. He added, however, that gold's one way ascent over the past month is taking on some 'ominous and speculative features that may not see it correct in orderly fashion'.
The precious metal rose to 743.70 usd an ounce -- extending this mornings high of 739.60 usd -- before retreating to 743.30 usd at 2.15 pm. In late New York trade yesterday, the metal was quoted at 734.50 usd.
The dollar plunged to a new all time low against the euro above 1.42 usd amid continued speculation the Fed will have to cut rates further to prop up the ailing US economy.