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Tuesday, 7th June 2005 (4734 views)

Gold today traded near a three-week closing high, performing well against the dollar and the euro and increasing in appeal as an alternative investment to both currencies.<br/><br/>Gold for immediate delivery rose by 90 cents, or 0.2 per cent, to US $426.63 an ounce today, compared with $425.95 by close of trading yesterday - a figure which had also shown an increase of 0.8 per cent and the highest close since May 11th.<br/><br/>According to Bloomberg, Kamal Naqvi, a precious metals trader at Barclays Capital in London, stated that gold "appears to be benefiting from an investment flow, partly on falling confidence in the major currencies."<br/><br/>Some analysts have said that gold may be ending its tendency to move with the euro against the dollar, following a 57 per cent climb in dollar-denominated gold in the four years to May 31st, and a 46 per cent gain in the euro against the dollar.<br/><br/>"Gold may have finally decoupled from the euro,' David Thurtell, a commodity strategist at Commonwealth Bank of Australia, stated. <br/><br/>"The two have been tracking closely over the last four years because of the euro's role as the main U.S. dollar alternative currency.' <br/><br/>Gold for August delivery rose by ten cents to $428.50 an ounce in after-hours trading today on the Comex division of the New York Mercantile Exchange.<img alt="track" src="http://directnews.dehavilland.co.uk/dn.gif?feedid=196&itemid=8690669"/>

 

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