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Dollar Woes - Gold’s Joy

September 27, 2007

Gold gained in London as the US$ slid to an all-time low against the euro, boosting demand for bullion as an alternative investment this morning. The dollar slumped on speculation a government report will show a drop in U.S. home sales, bolstering the Federal Reserve’s case for cutting interest rates. Gold is seen by some investors as a hedge against further declines in the dollar. The U.S. currency has weakened against 14 of the 16 most-active currencies since June 30, falling 4.4 percent versus the euro. Gold has climbed almost 11 percent since then.  A cut in interest rates would help the euro, and give indirect support to gold.

Written by Ernie · Filed Under Gold News 

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