Jewelry in the news: Gold Rises as Dollar Drops, Lower Prices Spur Jewelry Demand
Excerpt:
Gold rose for the first day in six in London, as the dollar dropped against the euro and jewelers took advantage of prices near a one-month low.
Dollar-denominated gold tends to rise when the dollar falls as it becomes cheaper to buy with other currencies. The dollar gained 3 percent against the euro last week on speculation the Federal Reserve will boost U.S. interest rates further. Gold fell 4 percent in the period, touching $394.48 Friday, the lowest since June 18.
``A consolidation might be on the cards after such a huge sell-off, with a backlash in the euro, and as lower prices have fuelled physical demand,'' Alexander Zumpfe, an analyst at Dresdner Kleinwort Wasserstein in Frankfurt, said in an e-mailed report.
Posted by GilbertZ at 11:48 AM
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