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Gold extends gains as dollar loses ground
Gold extended gains to rise nearly 3 per cent yesterday as the dollar lost ground against the euro, boosting the precious metal's appeal as a currency hedge.
- Reuters
- Published: 23:41 December 11, 2008
London: Gold extended gains to rise nearly 3 per cent yesterday as the dollar lost ground against the euro, boosting the precious metal's appeal as a currency hedge.
Gold and platinum prices traded within $5 of one another, threatening to breach parity for the first time in 12 years, as platinum remained rangebound ahead of a decision on a $14 billion plan to bail out US carmakers.
Platinum, which is mainly used as a component in catalytic converters, is particularly vulnerable to a downturn in the auto sector.
Spot gold hit a high of $833.80 an ounce and was quoted at $826.50/$828.50 an ounce at 1347 GMT, up from $809.90 in New York late on Wednesday.
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