Saturday, August 23, 2008

Gold strengthens as the dollar weakens and over inflation concerns

Gold rose to its highest in a week as the dollar dropped against the euro, buoying demand for the metal as an alternative investment. ``The major effect on gold is coming from the weakening dollar,'' Liran Kapeluto, a senior dealer at trading-system operator Finotec Trading U.K. Ltd., said by phone from London. ``It is pushing commodities up.'' Gold is currently trading at $821.05 as of 8:40am, GMT.

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