Gold futures rally on dollar, inflation data

BY

Gold futures rallied Thursday morning as the dollar fell to a 14-year low against the British pound, while a bigger-than-expected rise in core inflation data burnished the metal's appeal as an inflation hedge.

Gold for December delivery was last up $9 at $644.50 an ounce on the New York Mercantile Exchange. The benchmark contract lost more than $5 in the past two sessions, as traders weighed mixed economic data on the health of the U.S. economy and as the dollar won back some ground against the euro.

That trend reversed on Thursday with the dollar falling against all its major rivals, especially sterling, on continued concerns the U.S. economy will grow at a rate more slowly than other countries.

There was further support in data showing core inflation rose slightly faster than expected, at 0.2%, in October. This kept the year-over-year gain in the core personal consumption expenditure price index at 2.4%, well above the Federal Reserve's implied cap of 2%.

Economists had been expecting core prices to rise just 0.1%.

Meanwhile, oil prices extended their gains above $62 a barrel in a continued response to supply data that were viewed as bullish as well as to forecasts for cold weather across the U.S. in the coming days.

The threat of oil-driven inflation and bearish sentiment toward the dollar will continue to draw investors towards gold and its unique properties as a store of value.

魯賓

BY  在 2006-11-30 11:40 PM 發表:

Gold futures rallied Thursday morning as the dollar fell to a 14-year low against the British pound, while a bigger-than-expected rise in core inflation data burnished the metal's appeal as an infl ...

tks

ppighead

BY  在 2006-11-30 11:40 PM 發表:

Gold futures rallied Thursday morning as the dollar fell to a 14-year low against the British pound, while a bigger-than-expected rise in core inflation data burnished the metal's appeal as an infl ...

ths for yr info.

kwy

Thanks for your posting!