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Gold Reached the Week-Highest; Gained Corn, Falling Hogs

October 5, 2009 at 23:08 by Vladimir Vyun

Gold reached the highest price in more than a week as the weakening dollar increases the attractiveness of the precious metal as an inflation hedge. The dollar declined 0.5 percent against a basket of six major currencies. “The fundamentals are clearly bullish for gold,” said Chip Hanlon, the president of Delta Global Advisors. December futures for gold delivery jumped $13.50 (1.3 percent) to $1,017.80 per ounce on the New York Mercantile Exchange’s Comex division.

Corn gained on speculation that cold weather in the U.S. Midwest may damage harvest. About 6 percent of the corn was harvested by September 27th. Corn prices declined earlier on expectations of record crop. December futures for corn delivery gained $0.08 (2.4 percent) to $3.415 per bushel on CBoT.

Hogs tumbled to a five-week low as increasing production and decreasing prices indicating that supplies may exceed demand. More than 2.3 million hogs was slaughtered a week for three straight weeks. Average hog weight reached 92 kilograms on October 1st, up 1.5 percent from a previous year, signaling higher pork output. December futures for hog settlement slid $0.0095 (2 percent) to $0.476 per pound on CME.

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