Gold Higher in London Morning Trade on Dollar, Oil-Related Buying

Source: Platts (London)  (10/11/07)

"Short-term gold is likely to see further consolidation. However the metal appears to have established a base above $720/oz and with the market now in the strongest period for physical demand further weakness will be limited," analyst James Moore said, adding that Bulliondesk.com expected gold to challenge the $800/oz level before year-end...

Gold was indicated higher in London morning trade on Thursday, up on the back of a weak dollar and oil-related buying, a UK-based analyst said.

Spot bullion was bid at $746.55-747.05/oz at 0816 GMT on Thursday morning, gaining from its late New York spot price at $741.00/oz and from its Wednesday afternoon fix in London at $741.25/oz.

Bulliondesk.com analyst James Moore said in a morning report Thursday that the precious metals remained in positive territory "as dollar weakness and firm oil prices trigger pockets of buying."

..."Short-term gold is likely to see further consolidation. However the metal appears to have established a base above $720/oz and with the market now in the strongest period for physical demand further weakness will be limited," he said, adding that Bulliondesk.com expected gold to challenge the $800/oz level before year-end as investors continued factoring safe-haven assets into their portfolios, with an initial target of $765/oz.

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