Gold edges up towards record highs on Pakistan unrest, low dollar
December 31, 2007 by Philip Dru
The price of gold rose above 843 dollars on Monday, close to its all-time high of 850 dollars, as the precious metal profited from political unrest in Pakistan and a weak dollar, dealers said.Gold prices, which have risen by nearly a third in 2007, climbed as high as 843.24 dollars per ounce in Monday trading but later slipped back to 840.75 dollars on the London Bullion Market.
“Gold targets highs on flight-to-safety demand,” James Moore of thebulliondesk.com wrote in a research note on Monday.
“Safe-haven and investment demand pushed” gold higher after the dollar fell and unrest in Pakistan following the assassination of the country’s opposition leader Benazir Bhutto last week, he added.
The precious metal is widely regarded as a haven in troubled times.
Gold prices were also winning support from a struggling dollar, which fell against major rivals on the last trading day of 2007 in the wake of weak US data on new home sales, dealers said.
A falling US unit encourages demand for dollar-priced commodities because it makes them cheaper for buyers using stronger currencies.
The price of gold has also risen this year because of increased jewellery purchases in emerging economic powerhouses China and India, according to the World Gold Council.
Gold struck a 27-year peak of 845.84 dollars on November 7. Its all-time high stands at 850 dollars, reached on January 21, 1980.
AFP | Monday, December 31, 2007
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