How long will investors have an opportunity to acquire gold bullion for under $1,000/oz?
*Reuters, by Miho Yoshikawa, June 17, 2009
“Gold edged up on Wednesday, adding to the previous day’s 0.7 percent rise as the euro extended gains against the dollar into a second session.
Bullion climbed to a three-month high of $989.80 this month, but failed to top the key $1,000 level as the dollar rose, weakening the precious metal’s appeal as a currency hedge.
Gold had risen 0.3 percent to $936.60 an ounce by 0635 GMT from New York’s notional close of $934.10 on Tuesday, but was off the high of $939.25 struck the previous day.
‘There’s been a little bit of a rebound from its lows but it certainly seems to be stuck in the doldrums at the moment,’ said Darren Heathcote, head of trading at Investec Australia.
Heathcote, who said the dollar remained gold’s key driver, was optimistic about gold’s future price prospects.
‘I think ultimately, unless we see some kind of negative fallout again from the financial sector, the hopes are good for a continued recovery in metal prices and gold to benefit further,’ he said.”
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