Gold Boosts Japan Trading
For the first time since late 1987, Asian trading for gold prices broke through the critical threshold of $500 an ounce last November 29, 2005. The boost in gold prices was driven by investor demand for the metal as a diversifying asset prompting the rise in prices in Japan, says Business Week Online.
"A rise in the value of the dollar against the euro reversed the rally early trading on the New York Mercantile Exchange. The December gold contract was at $497, down $1.30 from the previous day," the Business Week website said, adding that "Gold’s appeal as a hedge against currency weakness, inflation and financial instabilities in general has driven the recent rise in prices."
According to the website, gold’s heightened status is apparently being encouraged by Japan’s strong technical trends and possibly concerns on further yen weakness along with Russia’s continuous demand for it in a bid to diversify its foreign reserves.
(Source: Gold Breaks Through $500 An Ounce In Asia, BusinessWeek.Com)
"A rise in the value of the dollar against the euro reversed the rally early trading on the New York Mercantile Exchange. The December gold contract was at $497, down $1.30 from the previous day," the Business Week website said, adding that "Gold’s appeal as a hedge against currency weakness, inflation and financial instabilities in general has driven the recent rise in prices."
According to the website, gold’s heightened status is apparently being encouraged by Japan’s strong technical trends and possibly concerns on further yen weakness along with Russia’s continuous demand for it in a bid to diversify its foreign reserves.
(Source: Gold Breaks Through $500 An Ounce In Asia, BusinessWeek.Com)
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