$787 After a $16 Up Friday!

October 26, 2007

The dollar hit a series of record lows against the euro today as a recent batch of weak US economic data fuelled speculation the Fed will cut rates again at its meeting next week. A weak dollar tends to benefit gold by making it cheaper for holders of other currencies. It also boosts oil prices by making them relatively cheaper for the same reason. And then there’s the drumbeat of war grew louder since yesterday, gold prices followed in lockstep with record oil prices and new lows set by the US dollar against the euro.

Written by Ernie · Filed Under Gold News