Weak Dollar Lifts Gold Above $1,100

ALLEN SYKORA
Wall St Journal
Monday, January 4th, 2010

Gold futures jumped to start 2010, hitting their highest level in two weeks Monday as the U.S. dollar went on the defensive.

“It started off in Europe when the euro started moving [higher] against the dollar,” said Andrew Montano, director of precious metals at Scotia Mocatta. “It’s very much a currency play.”

Currency analysts said the dollar is on the defensive on a day when commodity-country currencies are rising as commodities generally benefit from an increase in risk appetite.

Lightly traded but nearby January gold rose $22.70 to $1,117.90 an ounce on the Comex division of the New York Mercantile Exchange, while most-active February climbed $21.90 to $1,118.10. February gold peaked at $1,119.70 an ounce, its strongest level since Dec. 21.

Full article here

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