Gold Picks Up Steam As Dollar Hits Record Low

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Worries in financial markets over problems in credit markets have had a knee-jerk negative impact on gold recently as investors liquidated some of their holdings to cover losses incurred on riskier plays including stocks...But analysts said the market was now holding its own as the dollar resumed its slide.

Gold rallied in Europe on Tuesday, bouncing off near-one month lows, as the dollar slid to a record trough versus the euro and raised the metal's appeal for non-U.S. investors.

Analysts said the market was also benefiting from its status as a safe-haven as talk swirled on foreign exchange markets of the prospect of an imminent U.S. Federal Reserve rate cut.

Spot gold rose to $787.50/788.30 (U.S.) per troy ounce by 11:30 (GMT) from $780.10/780.90 late in New York on Monday. The market hit an intraday low of $772.60 in Asian trade last seen on Oct. 26.

Worries in financial markets over problems in credit markets have had a knee-jerk negative impact on gold recently as investors liquidated some of their holdings to cover losses incurred on riskier plays including stocks...But analysts said the market was now holding its own as the dollar resumed its slide.

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