Finotec News Archive - May 09 2008
Gold could reach the $900’s on high inflation
Gold seemed to be undervalued compared with oil and may try to test $930 an ounce in a few daysTammy Wall
09 May 2008
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Gold rose in Asia and headed for its first weekly advance in a month as record energy costs and a weaker dollar boosted demand for a hedge against inflation. Silver rose for a second day. The euro gained from an eight-week low against the dollar after European Central Bank President Jean-Claude Trichet said inflation remains the bank's priority, signaling policy makers won't cut interest rates soon. Crude oil in New York reached a record $124.73 a barrel today. ``Gold rebounded mainly on the dollar's decline and we can see actual demand now'' after the precious metal declined more than 14 percent from a record $1,032.70 an ounce on March 17, Hiroyuki Kikukawa, head of research at IDO Securities Co., said today. ``Gold seemed to be undervalued compared with oil and may try to test $930 an ounce in a few days.'' Gold currently trading at $888.15 as of 8:23 am, GMT.
Finotec Analysis Team
09 May 2008
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