The gold price
Gold bounces back from week-long lull - 11 October 2007
Gold last night finished on a high with the yellow metal for December delivery finishing on an upward surge of $4.60 to reach $737.40 per ounce.
Today (October 10th) there was further good news for those looking to buy gold, as the health of the futures market was boosted by a $7 climb to hit heights of $750.10 per ounce.
The upward trend for futures is a reversal of fortunes after a disappointing end to last week saw gold prices fall away slightly as the dust settled on its meteoric September rise.
Gold showed considerable resilience to keep its price buoyant despite a market rally elsewhere in response to the release of minutes from September's Federal Reserve policy meeting.
September's infamous meeting was the preliminary chamber for a decision to cut interest rates by 0.5 per cent, but markets were yesterday buoyed by confirmations that the council voted unanimously to cut rates in order to counter sub-prime worries.
This suggested to many that the same could happen again, a prospect which could mean greater liquidity and further inflation, leaving gold as a better investment proposition with a weaker dollar in sight.
Analysts at Action Economics told Marketwatch that the effect was already seen today and yesterday: "Bullion is higher on the back of renewed dollar weakening and a pickup in oil prices."
Today (October 10th) there was further good news for those looking to buy gold, as the health of the futures market was boosted by a $7 climb to hit heights of $750.10 per ounce.
The upward trend for futures is a reversal of fortunes after a disappointing end to last week saw gold prices fall away slightly as the dust settled on its meteoric September rise.
Gold showed considerable resilience to keep its price buoyant despite a market rally elsewhere in response to the release of minutes from September's Federal Reserve policy meeting.
September's infamous meeting was the preliminary chamber for a decision to cut interest rates by 0.5 per cent, but markets were yesterday buoyed by confirmations that the council voted unanimously to cut rates in order to counter sub-prime worries.
This suggested to many that the same could happen again, a prospect which could mean greater liquidity and further inflation, leaving gold as a better investment proposition with a weaker dollar in sight.
Analysts at Action Economics told Marketwatch that the effect was already seen today and yesterday: "Bullion is higher on the back of renewed dollar weakening and a pickup in oil prices."
Goldbug, 11 Oct '07
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