wgadget
10-11-2007, 11:52 AM
http://www.breitbart.com/article.php?id=071011144653.2nevnotz&show_article=1
The price of gold soared Thursday to the highest level since 1980 on the back of the weak US dollar, while platinum neared a record level on fresh supply woes, analysts said.
Gold prices leapt as high as 748.10 dollars per ounce on the London Bullion Market.
Platinum, meanwhile, hit 1,399.25 dollars an ounce on the London Platinum and Palladium Market. That was close to its record high 1,402.50 dollars hit in November 2006.
The high points came as the European single currency bounced back above 1.42 dollars, rising close to its record high 1.4283 dollars that was struck on October 1.
Gold tends to rise when the US unit weakens because it makes commodities that are priced in dollars cheaper for buyers using stronger currencies, analysts say.
"Gold prices strengthened again as US dollar weakness underpinned solid gains," noted analysts at Barclays Capital.
The precious metal is also supported by strong crude oil prices, which in turn spark inflationary concerns. However, gold is regarded as a safe bet in times of rising inflation.
Platinum, already beset with tight supplies, took another hit on Thursday from fresh concerns in South Africa.
"The rise in (platinum) prices has been supported by concerns over supply following news of electrical power shortages in South Africa -- the world's largest producer of platinum," added Barclays Capital analysts.
"The power supply to smelters owned by Anglo Platinum was disrupted and reignited fears that the power situation could worsen over the next few years."
The price of gold soared Thursday to the highest level since 1980 on the back of the weak US dollar, while platinum neared a record level on fresh supply woes, analysts said.
Gold prices leapt as high as 748.10 dollars per ounce on the London Bullion Market.
Platinum, meanwhile, hit 1,399.25 dollars an ounce on the London Platinum and Palladium Market. That was close to its record high 1,402.50 dollars hit in November 2006.
The high points came as the European single currency bounced back above 1.42 dollars, rising close to its record high 1.4283 dollars that was struck on October 1.
Gold tends to rise when the US unit weakens because it makes commodities that are priced in dollars cheaper for buyers using stronger currencies, analysts say.
"Gold prices strengthened again as US dollar weakness underpinned solid gains," noted analysts at Barclays Capital.
The precious metal is also supported by strong crude oil prices, which in turn spark inflationary concerns. However, gold is regarded as a safe bet in times of rising inflation.
Platinum, already beset with tight supplies, took another hit on Thursday from fresh concerns in South Africa.
"The rise in (platinum) prices has been supported by concerns over supply following news of electrical power shortages in South Africa -- the world's largest producer of platinum," added Barclays Capital analysts.
"The power supply to smelters owned by Anglo Platinum was disrupted and reignited fears that the power situation could worsen over the next few years."