Wednesday, September 16, 2009
TOKYO, Sept 16 (Reuters) – Silver and platinum rallied to multi-month highs on Wednesday with gold up more than $10 at its highest since March 2008, within sight of all-time highs after the dollar slid to a one-year low on investors’ renewed interest in alternative assets.
Buying of gold accelerated when the dollar extended losses against the euro to its 2009 low. Growing optimism about the economy has prompted investors to sell the dollar and snap up riskier assets such as stocks and commodities, helping to lift gold above $1,000 an ounce last week.
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Kazuhiko Saito, chief analyst at Tokyo’s Fujitomi Co Ltd, said inflation risks were also helping to support gold, which investors see as a hedge against the erosion of paper assets.
“We have those comments from the Fed about the economy on the mend, but there are still worries about inflation,” Saito said.
This article was posted: Wednesday, September 16, 2009 at 9:35 am