Gold Gains as Dollar Decline to One-Year Low Increases Appeal
By Kim Kyoungwha
Sept. 23 (Bloomberg) -- Gold advanced as a weakness in the dollar bolstered the precious metal’s appeal as an alternative investment.
The dollar declined to a one-year low against the euro on speculation Federal Reserve policy makers will signal today they will keep interest rates low. The U.S. currency fell against 13 of 16 major counterparts on concern that Group of 20 leaders, meeting in Pittsburgh starting tomorrow, will call for a reduction in global trade imbalances that may cause further gains in other currencies.
“Gold has attracted a lot of attention as the price continues to trade mostly in the $1,000 plus range,” said David Moore, a commodity strategist with Commonwealth Bank of Australia. “A lower dollar may generate investor interest in gold as a hedge against dollar weakness.”
By Kim Kyoungwha
Sept. 23 (Bloomberg) -- Gold advanced as a weakness in the dollar bolstered the precious metal’s appeal as an alternative investment.
The dollar declined to a one-year low against the euro on speculation Federal Reserve policy makers will signal today they will keep interest rates low. The U.S. currency fell against 13 of 16 major counterparts on concern that Group of 20 leaders, meeting in Pittsburgh starting tomorrow, will call for a reduction in global trade imbalances that may cause further gains in other currencies.
“Gold has attracted a lot of attention as the price continues to trade mostly in the $1,000 plus range,” said David Moore, a commodity strategist with Commonwealth Bank of Australia. “A lower dollar may generate investor interest in gold as a hedge against dollar weakness.”
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