Gold eyes ~ 26-year high.
IN THE WAKE of the sub prime-mortgage related slide in equities
values in August, gold since has soared to 16-month highs. An ailing US
dollar, which at press time was approaching an all-time low against the
euro, and safe-haven buying had pushed the precious metal up to US$726 a
troy ounce by 18 September. This is just US$4 short of the 26-year high
of US$730 a troy ounce reached in mid-May 2006.
A rise now above that level will take gold to its highest since
January 1980, when the precious metal hit an all-time high of US$850 a
troy ounce.
Traders said there was a strong possibility that gold will see
US$740-US$750 by the end of September.
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