Gold jumps to seven-week high on economic fears

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Gold jumped to a new seven-week high above $615 an ounce on Wednesday as nervous investors eyeing the weaker dollar and the deteriorating state of the U.S. economy piled into the safe-haven asset, analysts said.

Investors sometimes buy gold as protection against economic trouble and sometimes as an inflation hedge. For much of this year, gold has risen or fallen with oil prices and worries about rising price pressures. But the relationship with oil has weakened in recent days.

It is evidence that the stronger driver for the gold price is the strength of the dollar. Analyst said.

Investors have been buying gold since last Friday when the dollar slid to one-month lows against the euro and yen on fears that the U.S. economy might be slowing at a faster pace than markets had been expecting.

Negative news on the U.S. economy includes third quarter annualised gross domestic product growth of 1.6 percent from 2.6 percent in the second quarter, released last Friday.

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BY  在 2006-11-1 10:11 PM 發表:

Gold jumped to a new seven-week high above $615 an ounce on Wednesday as nervous investors eyeing the weaker dollar and the deteriorating state of the U.S. economy piled into the safe-haven asset,  ...

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