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Gold Goes Up as Weak Dollar Increases Demand

February 10, 2010 at 0:58 by Vladimir Vyun

Gold rose in New York and London after the dollar declined, boosting appeal of precious metals as an inflation hedge. The U.S. Dollar Index dropped 0.9 percent on speculation that European Union officials will agree to assist Greece to tackle its budget deficit. Gold have tendency to gain when greenback falls.

As concern for European woes is decreasing, the demand for gold and other investment assets rebound. China’s passenger-car sales more than doubled in January with government economic stimulus measures. High automobile sales in China helped the prices for precious metals.

April delivery for gold futures gained $15.10 (1.4 percent) to $1,081.30 per ounce by 12:02 on the Comex division of the New York Mercantile Exchange. Previous decline was considered as “a buying opportunity” and have increased bullion purchases.

If you have any questions and comments on the commodities today, use the form below to reply.

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