- Gold hit its highest price in almost eight years on Thursday,
attracting bids of $413 an ounce, as the dollar struggled near a record
low against the euro.
-
- Precious metals analysts said the spot price was poised
to crack the 1996 peak of $417 an ounce, perhaps before the end of the
year, because of the gloomy outlook for the dollar.
-
- "Gold appears well supported by the falling dollar,
which should keep the price at least near its current price until Christmas,"
said Australia & New Zealand Bank gold analyst Peter Windred.
-
- "Our view is that the dollar has further to fall,
which will support gold."
-
- The sagging dollar has been one of the main drivers behind
an 18 percent rise in spot gold prices this year as investors sought alternative
investments such as gold and U.S. Treasury bonds.
-
- After rising as high as $413 an ounce, its highest since
February 1996, spot gold retreated to $410.00/410.75 in Asia by 0404 GMT,
down from New York's last quoted level of $411.75/412.00 on profit-taking.
Dealers pegged key support at $405 an ounce and resistance at $415.00.
-
- Low U.S. interest rates and ballooning budget and current
account deficits have put pressure on the dollar for some time, but it
has found support against the yen due to wariness over Japanese intervention
to protect an export-driven economic recovery.
-
- The dollar was at 107.45 yen , while the euro was at
$1.2405.
-
- The benchmark October 2004 gold contract on the Tokyo
Commodity Exchange gained two yen per gram at 1,416 yen per gram.
-
- In other precious metal, spot platinum was quoted at
$852.00/857.00 an ounce compared with $841.50/846.00 last quoted in New
York.
-
- Spot silver was quoted at $5.69/5.71 an ounce and palladium
was at $199.00/204.00.
|
