(1888PressRelease)
December 06, 2007 - The falling value of the dollar against the euro saw gold and silver futures pushing to higher levels today.
February delivery gold futures were up 0.4 per cent or US$3.50 to US$792.60 an ounce. It has been a good year for gold, with futures gaining 9.5 per cent overall.
Silver futures for delivery in March were also up to US$14.315 an ounce, an increase of 15 cents or 1.1 per cent.
Having made modest gains last week, the dollar fell against the major currencies due to expectation the US Federal Reserve will cut interest rates again.
Stephen Platt, a commodity analyst at Archer Financial Services in Chicago, explained to Bloomberg: "You need renewed weakness in the dollar to take gold higher."
However, declining oil prices may limit the gains made by gold, according to commentators.
"Gold will remain fixated on the dollar and oil, and all markets will listen closely for any commentary from Fed governors hinting at future rate policy,'' said Jim Pogoda, a former precious-metals trader for Mitsubishi International.
Further analysis of the impact of currency movements on the price of precious metals could be supplied by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.
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