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Weakening dollar boosts gold's value

Release Date: 
Wednesday, November 17, 2010

Weakening dollar boosts gold's value

Nov. 17, 2010

The weakening dollar increased investor demand for gold, prompting the precious metal to bounce back from its lowest price in two weeks, Bloomberg reports.

"Gold is still very well-bid on the breaks," Frank McGhee, head dealer at Integrated Brokerage Services in Chicago, told Bloomberg. "A weaker dollar is helping gold."

Gold demand rose 12 percent in the third quarter, largely fueled by the 36 percent increase in Indian purchases of jewelry, according to the World Gold Council. The nation purchased 184.5 metric tons for jewelry and 45 tons in bars and coins. China was the second largest buyer at a time when the Chinese economy was showing signs of inflation.

"We see rising income levels and consumers who have a higher savings rate," Eily Ong, an investment research manager for the World Gold Council in London, told Bloomberg. "They want to lock in their wealth in an asset that has the preservation properties of gold."

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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