The price of gold, which has risen 16 percent in the past year, reached a new record high of $1,048.40 ($1,054 an ounce for immediate delivery) 7 October as investors seek a hedge against the dollar. The Independent in the UK stirred fears earlier in the week with an article saying that oil-rich Arab nations could be moving out of dollars and into gold, although other market watchers disagree and the story was later discredited by several other media. A Credit Suisse gold market analyst told the Daily Mail that gold will continue to climb while investors move out of dollars. The Financial Times Thursday 8 October says “The depreciation of the US dollar is sparking growing jitters among critics of the Obama administration over the potential loss of America’s reserve currency status.”
The dollar Thursday morning was trading at $1.61/£, $.068/€ and $1/CHF1.03.
Links to other sites: BBC, Bloomberg, bullionvault, CS Monitor, Financial Times, goldprice.org, Guardian, UK, Independent, UK, Wall Street Journal/Dow Jones wire
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News story, GenevaLunch, 8 October 2009.
Filed under: World news
Tags: depreciation, dollar, falling, gold, hedge, oil trading, prices, rise