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Weak dollar boosts gold and oil | |
(about 8 hours later) | |
The price of gold has hit a new all-time high, boosted by continued concerns about the weakening dollar. | The price of gold has hit a new all-time high, boosted by continued concerns about the weakening dollar. |
Gold hit a record of $1,174 an ounce, up almost 2% from Friday's close. | |
The expectation that US interest rates will remain low has put pressure on the dollar, making both gold and oil more attractive as an investment. | |
And the price of US light crude oil was up $2.10 to $79.57 a barrel. The weaker dollar also makes oil cheaper to buy for holders of other currencies. | |
London Brent crude had rise $2.05 to $79.25. | |
'Increasingly attractive' | |
Growing demand from emerging markets, particularly in Asia, is also helping to drive the price of gold higher. | Growing demand from emerging markets, particularly in Asia, is also helping to drive the price of gold higher. |
Emerging market governments are looking to diversify their foreign exchange holdings and are buying gold as a result. | Emerging market governments are looking to diversify their foreign exchange holdings and are buying gold as a result. |
"Sentiment is very upbeat and gold is looking increasingly attractive," said Stefan Graber at Credit Suisse. | "Sentiment is very upbeat and gold is looking increasingly attractive," said Stefan Graber at Credit Suisse. |
Analysts expect the price of gold to continue rising. | Analysts expect the price of gold to continue rising. |
"It looks like $1,200 will be seen much sooner than expected," said Afshin Nabavi at gold bullion refiner MKS Finance. | "It looks like $1,200 will be seen much sooner than expected," said Afshin Nabavi at gold bullion refiner MKS Finance. |