As dollar slips, gold rises more than 2 percent
September 7, 2009 by Personal Liberty News Desk
Precious metal prices rallied on Wednesday as U.S. economic data caused the dollar to weaken again and prompted investors to look for safety.
The gold price finished near the high of $979.35, a gain of 2.2 percent, while silver rose to $15.46, marking a 1.9 percent increase on the New York Mercantile Exchange, as investors appeared nervous after a monthly unemployment report showed 298,000 jobs were lost in the private sector in August.
In addition to that, factory orders for July ended below most analysts’ expectations, and inflation fears were revived as the dollar slid as much as 0.6 percent against the euro.
"If inflation is going to rear its head, and there’s some economic data to support that, then we could see [gold prices move higher]," said Michael Khouw, director of equity derivatives for Cantor Fitzgerald LP, quoted by the Wall Street Journal.
As Wednesday’s closing price of gold was at a near three-month high, trading in shares of metals companies such as Gold Fields and Yamana Gold was strong in the options market.