Alexander
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Gold Rebounds From 11-Month Low - 2008/09/12 20:17
Hey guys! Gold rebounded from an 11-month low in London as the dollar fell against currencies such as the euro, bolstering the appeal of the metal as a hedge against further declines. Platinum and palladium also advanced.
Gold has had a correlation of 0.68 to the euro-dollar exchange rate this year, up from 0.58 last year. A figure of 1 would mean the two move in lockstep. The euro rose to $1.4102, after touching $1.3882 yesterday, the weakest since Sept. 18 last year.
Gold for immediate delivery climbed $8.11, or 1.1 percent, to $754.58 an ounce as of 11:31 a.m. in London. The metal yesterday reached its lowest since October. The 14-day relative strength index, used by some traders to gauge momentum of price movements, has been below 30 since Sept. 9, signaling prices may rebound.
Gold futures for December climbed $12.70, or 1.7 percent, to $758.20 an ounce in electronic trading on the Comex division of the New York Mercantile Exchange.
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