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Is the gold market well supported with oil piercing through $73 resistance?

*Bloomberg, by Nicholas Larkin, August 21, 2009

“Gold Climbs in New York as Lower Dollar Boosts Demand for Hedge

Gold rose the most this month in New York and London as the dollar fell to a two-week low, increasing the metal’s appeal as a hedge against further declines in the U.S. currency.

The dollar dropped 0.6 percent against the euro as German services and French manufacturing unexpectedly expanded in August, adding to signs the worst recession since World War II is easing. Gold tends to rise as the dollar falls.

‘The U.S. dollar is a bit weaker and this is a supportive factor for gold,’ Peter Fertig, owner of Quantitative Commodity Research Ltd. in Hainburg, Germany, said today by phone. ‘Gold seems to be well supported’ with oil prices above $73 a barrel.”

*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.

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