Posted by: davidgarnerconsulting | October 6, 2009

Gold Investment – Gold Prices Rise as Dollar Falls

Gold Investment – The price of gold has hit a new 18-month high of $1,025 an ounce, after a decline in the dollar boosted the attractiveness of metals to investors.

Copper prices also rose above $6,000 a tonne, as the weaker dollar made metals cheaper for non-US investors.

The dollar fell after a newspaper report – later denied – claimed that Gulf nations wished to replace the greenback as the main oil currency.

The rise in metal prices lifted shares in mining firms.

‘Biggest driver’

On the UK’s main FTSE 100 index, the top five risers were all mining stocks, with Kazkhhmys up 6.9%, followed by Randgold (5.3%), Antofagasta (3.5%), Vedanta (4.5%), and Anglo American (4.4%).

Commodities analyst Robin Bhar, said the fall in the value of the dollar had given metal prices a welcome boost.

“The dollar has been the biggest driver,” he said.

“It’s helped to support flagging prices.”

Gold reached an all-time record of $1,032 an ounce in March 2008. It has risen in value for each of the past eight years.

Source: www.news.bbc.co.uk

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