U.S. Gold Above $980 as Weak Dollar Stirs Fund Inflows
Source: Reuters (5/29/09)
". . .resurgent risk appetite pummeled the dollar, attracting investment inflows into the bullion market."
August GCQ9 up $16.40, or 1.7%, at $979.60 an ounce at 11:05 a.m. EDT (1505 GMT) on the COMEX division of the New York Mercantile Exchange.
Ranged from $960.40 to $982, which marked the highest price since Feb. 25.
Buying in gold as a hedge against the falling dollar increased after the greenback fell to five-month lows against a basket of currencies .DXY and the euro rose above $1.41.
Evidence of an easing global recession drove investors to snap up higher-yielding currencies and riskier assets, sending the U.S. currency sharply lower.
Gold rally supported by the combination of a weaker dollar and a recovery in broad commodities prices - James Steel, chief commodities analyst at HSBC.
Substantial investment inflows into the commodity sector, most prominently in oil, also helped gold - Steel.