2
July
Gold rallies above $940, dollar drops on China news
2 July 2009 Reuters
Gold climbed above $940 an ounce on Wednesday, as news that China has asked to debate proposals for a new global reserve currency sent the dollar reeling, highlighting the status of gold as a hedge against a falling U.S. currency.
Investors have recently viewed the dollar as a safe haven. In early June, a resurgent greenback had foiled gold's attempt to break above the $1,000-an-ounce level.
On Wednesday, China asked to debate proposals for a new global reserve currency at next week's Group of Eight summit in Italy and the issue could be referred to briefly in the summit statement, G8 sources said.
http://in.reuters.com/article/hotStocksNews/idINTRE5600MG20090701
