Gold May Gain as Weakening Dollar Increases Demand
October 19th, 2009 Posted in Oil and Precious Metals
Gold, the most precious metal, rose on Monday, building on the gains of the last 2 weeks, as the dollar continued to weaken against the EUR, boosting interest in the metal as an alternative asset.
The Dollar’s weakness, which makes gold cheaper for non-U.S. investors, was identified by analysts as the primary driver behind Gold’s rally to record highs last week. As long as the U.S dollar remains vulnerable, investors’ appetite for Gold could re-emerge very quickly, analysts have said. If the U.S dollar continues weakening, traders could see a test of $1,072 later today.
