Are gold and silver up big for the year?
*Bloomberg, by Pham-Duy Nguyen, December 21, 2007
“Gold rose after the dollar fell against the euro, boosting the appeal of the precious metal as an alternative investment. Silver also gained.
The dollar fell today against 15 of the 16 most-active currencies. Investment in the StreetTracks Gold Trust, an exchange-traded fund backed by bullion, has climbed to a record 617 metric tons. Before today, the precious metal advanced 26 percent this year as the dollar fell 7.9 percent against the euro.
`Gold is looking for the dollar to start to weaken,’ said Frank McGhee, head metals trader at Integrated Brokerage Services LLC in Chicago. `The funds are piling in.’
Gold futures for February delivery rose $11.60, or 1.4 percent, to $814.80 an ounce at 12:15 p.m. on the Comex division of the New York Mercantile Exchange.
Silver futures for March delivery advanced 20 cents, or 1.4 percent, to $14.54 an ounce. Before today, the metal gained 11 percent this year.
Five of the past bear markets in the dollar have sent gold higher. The metal is headed for the seventh straight annual gain after touching a 27-year high of $848 on Nov. 7. The price rose 23 percent in 2006, while the dollar fell 10 percent against the euro.
Gold also climbed on demand for a hedge against inflation.”
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