20
October
Gold Advances After Tumbling by Most in Three Months on Dollar, China Rate
20 October 2010 Bloomberg.com
Gold gained in London as a weaker dollar boosted demand for an alternative asset and as some investors bought bullion after China’s interest-rate increase spurred the metal’s biggest drop in more than three months.
Gold slid 2.7 percent yesterday after China raised borrowing costs for the first time since 2007, spurring gains for the dollar. The greenback today slipped against the euro on speculation that Federal Reserve officials will signal further credit-easing measures to support economic growth. Gold, which usually moves inversely to the U.S. currency, reached a record $1,387.35 an ounce on Oct. 14.
