Gold on Bullish Run
October 22nd, 2009 Posted in Oil and Precious Metals
Gold prices have soared today, as a decline in the dollar boosted the appeal of precious metals and other commodities as alternative assets.
Gold is often seen as a hedge against a weakening dollar. A weaker dollar also makes gold and other commodities cheaper for holders of other currencies. Gold futures have climbed 20% this year, reaching a record $1,072 an ounce on Oct. 14, as the dollar slumped against major currencies.
Gold is headed for a ninth straight annual gain as the Federal Reserve keeps its benchmark interest rate at zero to 0.25% to revive growth. The dollar has declined on speculation that the Fed will be slow to raise interest rates, while other central banks boost borrowing costs to fend off inflation as economies recover.
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