Monday, June 18, 2007

US gold ends strong with oil surge, soft dollar

NEW YORK, June 18 (Reuters) - U.S. gold futures finished higher on Monday, racing up to their highest prices in 10 days as they tracked crude oil's rally to a 10-month high above $72 a barrel, traders said.
Dollar weakness against the euro also kept gold prices supported. A weaker dollar tends to bolster investment in dollar-denominated assets like gold in overseas markets.
"(Gold rallied on) strength in the oil, and initially we had strength in the base metals, but that sold off later in the day, and (there was) clearly some weakness in the dollar against other currencies. Those are all factors that have been pushing gold around as of late," said Andy Montano, a director at ScotiaMocatta in Toronto.

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