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U.S. Fed's QE prompts soaring values in London

Release Date: 
Friday, November 5, 2010

Friday morning saw gold strike a nominal all-time high when it nearly reached $1,400 per troy ounce in the London Market. Investors opted for potential inflation security following the central bank's efforts to stimulate the economy earlier in the week, the Financial Times reports. Prices later settled at $1395 for the PM London Fix.

The U.S. dollar was weaker after the U.S. Federal Reserve announced it will purchase $600 billion worth of assets, prompting precious metals, equities, oil and foreign currencies to rally. Friday's London gold price surge was partly influenced by new investors' demands for gold as a result of the dollar losing value.

"There is a new buyer in the market," a senior London-based trader told the Financial Times.

Since January, gold prices have increased more than twenty-six percent while the dollar has fallen.

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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