Gold Bounces Toward $740

Source: Reuters  (10/5/07)

"Over the medium term dollar is likely to weaken," said Matthew Turner, metals analyst at Virtual Metals. "The jobs data is quite erratic and it doesn’t mean that the next data would be as positive. Gold is likely to strengthen over the medium term on a weaker dollar and strong physical demand," he said.


Gold bounced on Friday in choppy activity, moving lock-step with the dollar, as investors brushed aside robust US employment data and bet the world’s biggest economy was still on a slowing path.

Spot gold hit an intraday high of $739,30, closing in 28-year peaks hit earlier this week, before paring gains to $738,40/739,10 in late afternoon trade, from $736,10/736,90 in New York late on Thursday, when it hit a two-week low of $720,70.

..."Over the medium term dollar is likely to weaken," said Matthew Turner, metals analyst at Virtual Metals. "The jobs data is quite erratic and it doesn’t mean that the next data would be as positive. Gold is likely to strengthen over the medium term on a weaker dollar and strong physical demand," he said.

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