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Precious metal drives toward 10th year of gains

Release Date: 
Thursday, December 2, 2010

Gold continued its drive toward a decade of annual gains Thursday as the dollar weakened following a real estate report with surprising information, Bloomberg reports.

Pending home sales increased in October and hit a record 10 percent, according to the National Association of Realtors, a D.C. advocacy group that has been monitoring statistics since 2001. In September, the index slipped 1.8 percent, making the October results all the more unexpected.

"Gold is moving up on better economic data," Frank Lesh, a trader at Futurepath Trading in Chicago, told Bloomberg. "The risk trade is on."

Thursday also marked the second-straight day that the dollar fell when held up against six major currencies. As the dollar weakens, precious metals generally become a stronger alternative for investors. Thus far in 2010, the price of gold has increased 27 percent.

"Gold is up primarily on dollar weakness and economic optimism," Adam Klopfenstein, a senior market strategist for Lind-Waldock in Chicago, told Bloomberg. "This is very positive for gold on the future inflation front."

This news article is independently provided by Brafton and does not represent the views or opinions of Goldline International, Inc. Although the information in this news alert has been obtained from sources believed to be reliable, Goldline does not guarĀ­antee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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