Thursday, January 24, 2008

Gold Futures Top $900 as Dollar Drops; Platinum Jumps to Record

Jan. 24 (Bloomberg) -- Gold topped $900 an ounce in New York for the first time in a week after the dollar dropped against the euro, boosting the appeal of the precious metal as an alternative investment. Platinum futures surged to a record.

European Central Bank officials signaled interest rates would remain steady to cap inflation. The Federal Reserve on Jan. 22 slashed the benchmark U.S. rate by 0.75 percentage point in an emergency move. Gold surged 31 percent last year as reductions in borrowing costs sent the dollar 9.5 percent lower against the euro.

``The biggest factor fueling the rally is going to be continued easing by the Fed while the ECB stands pat,'' said Matt Zeman, a metals trader at LaSalle Futures Group Inc. in Chicago. ``The dollar should keep on losing ground against the euro, so we should see another record in gold in the next two weeks, if not sooner.'' . . .

Full story at: Link

No comments: