Saturday, June 27, 2009

Gold rises slightly as dollar broadly drops


NEW YORK (Reuters) - Gold futures ended slightly higher on Friday, losing some of their initial

upward momentum based on a broadly weaker dollar, and the metal could continue to be

rangebound because of weakened investment demand.

The price of gold has largely moved in a broad range between $920 and $940 this week, as the

combination of the resurgent dollar and easing inflation worries put a damper on bullion's rise.

Analysts said that the recent encouraging U.S. data had hampered gold's rise, as the danger of

fresh crises in financial markets appeared less imminent.

"One of the reasons gold has been bought has been as an insurance premium against inflation, or

against systemic risk from another camp of investors," said Peter Fertig, an analyst with

Quantitative Commodity Research. "At least for the latter group, their need to hold gold has

clearly been reduced."

Source: http://www.reuters.com/article/hotStocksNews/idUSTRE55P1EK20090626

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