Gold: 352.40
Silver: 4.82
USD: 94.35
Gold at two-month high on weak dollar
>>"I think we see gold continuing to work higher over the coming week, with my target being a re-test of $365, although strong resistance is likely to be seen between $349-52 as the market sees profit taking," said James Moore, metals analyst at TheBullioNdesk.com.<<
Mon May 12, 2003 05:53 AM ET
LONDON, May 12 (Reuters) - Safe-haven gold hit two-month highs in European trade on Monday as the dollar fell to its lowest level against the euro in over four years.
Spot gold hit $350.75 an ounce, its highest level since March 11 and up from New York's closing $348.30/349.10 on Friday.
The dollar fell more than one percent against the euro to its lowest level in over four years as traders jumped on comments from U.S. Treasury Secretary John Snow that a cheap dollar would help U.S. exports.
It also fell more than three-quarters of a percent against the yen, coming with sight of recent 10-month lows.
A weaker dollar traditionally supports bullion. Lower European stock markets also boosted gold.
"I think we see gold continuing to work higher over the coming week, with my target being a re-test of $365, although strong resistance is likely to be seen between $349-52 as the market sees profit taking," said James Moore, metals analyst at TheBullioNdesk.com.
By 0944 GMT, spot gold was quoted at $350.10/350.85.
It was set or "fixed" in the London morning session at $350.35 an ounce, up from the previous fix of $347.90.
"The near-term outlook for gold and, particularly, gold equities appears encouraging given the growing expectation that the current downward momentum in the U.S. dollar will continue," said Kamal Naqvi, analyst at Macquarie Research.
In other precious metals, silver was quoted at $4.78/4.80, up from New York's previous $4.77/4.79, while palladium fell to $150.00/155.00 versus $152.00/157.00.
Platinum gained to $643.00/648.00 from $642.00/647.00 an ounce.
reuters.com |
