Gold Rises More Than Three Percent on Weaker Dollar

Source:

Expectations of further interest rate cuts this week by major central banks also boosted gold.

Gold prices rose more than 3 percent today on the weaker dollar, with investors keeping a close eye on the currency ahead of the U.S. presidential election result.

Spot gold was at $740.35/742.25 at 1509 GMT compared with $722.35 late in New York on Monday. It earlier rose 3.4 percent to a high of $747.05 an ounce.

A win by Democrat Barack Obama, who is leading his Republican opponent John McCain in most polls, would be marginally better for the dollar, only because the Democrats already control Congress, analysts say.

"An Obama-led dollar rally could hurt gold but the effect will probably only be short lived," said Matthew Turner, an analyst at VM Group...

Expectations of further interest rate cuts this week by major central banks also boosted gold.

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