Gold prices pushed the U.S. dollar depreciation
Gold Investing February 19th, 2010
Contract price of gold climbed to its highest level in a week as the dollar depreciation that drive demand for the precious metal as an alternative investment.
U.S. dollar slumped to the lowest point this week against six major currencies of the world. Gold bullion, which is usually purchased traders to hedge from inflation, moved up if the dollar weakens.
Precious metal prices, which rose 25% this year, touching a record level of U.S. $ 1227.50 per ounce at the beginning of this month, while the dollar plunged more than 4%.
“The sentiment is still strong, while the greenback continued to get pressure,” said James Moore, analyst at TheBullionDesk.com in London.
The price of gold futures for February delivery rose U.S. $ 10.80 (1%) to U.S. $ 1104.80 per ounce on the Comex unit, the New York Mercantile Exchange, the biggest increase since December 16.
Precious metals price rally this year’s record. Growth in the United States is weakened during the recession the longest since World War II to encourage demand for gold as an investment alternative.
