Will 2008 further the seven straight years of appreciation for gold, silver and platinum?
*Reuters, by Atul Prakash and Veronica Brown, January 28, 2008
“Gold and platinum sailed to record highs on Monday, boosted by dollar weakness and a power crisis in major producer South Africa that derailed output.
The rise in precious metals also pulled silver to a 27-year high.
Spot gold hit a historic $929.20 per ounce before paring gains slightly to stand at $927.50/928.40 an ounce by 11:59 a.m. ET, against $913.00/914.00 late in New York on Friday.
The dollar fell versus the euro, making bullion priced in the U.S. currency cheaper for non-U.S. investors, as markets anticipated the Federal Reserve’s policy meeting this week.
Markets are betting that the Fed will cut interest rates by as much as 50 basis points after the two-day policy meeting ending on Wednesday, following last week’s hefty 75-basis-point cut in a rare move between scheduled meetings.
Those expectations were heightened after data showing weaker than expected U.S. new home sales in December.”
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