29
September
Gold May Advance as Dollar Declines, Mideast Tensions Increase
29 September 2009 Bloomberg.com
Gold, little changed in Asia, may gain as the dollar renews a decline and geopolitical tension in the Middle East boosts demand for the precious metal as an alternative investment.
The Dollar Index, which tracks the greenback against the six major currencies including the yen, fell as much as 0.3 percent. A rise in U.S. stocks also cut demand for so-called haven currencies.
“The gyrations of the gold price were influenced by the pattern of U.S. dollar trading,” David Moore, commodity strategist at Commonwealth Bank of Australia, said in an e-mail. Gold typically trades inversely to the U.S. currency.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a6d4kCuGiraI
