carao
12-09-2008, 06:31 AM
Gold prices sank to a new one-year low on Thursday, falling below $750 an ounce as a stronger greenback and easing oil prices encouraged investors to pull money out of commodities.
The dollar rose to an almost one-year high versus the euro Thursday despite a Commerce Department report showing a soaring US trade deficit for July. The 15-nation euro bought $1.3946 in late Thursday trading, down from $1.4033 late Wednesday. The euro dropped as low as $1.3881 for the session, a level not seen since late September 2007.
The dollar's rally has fueled an exodus from commodities among large institutional investors who bought positions in gold, oil and other hard assets as a hedge against inflation or weakness in the US currency.
The dollar rose to an almost one-year high versus the euro Thursday despite a Commerce Department report showing a soaring US trade deficit for July. The 15-nation euro bought $1.3946 in late Thursday trading, down from $1.4033 late Wednesday. The euro dropped as low as $1.3881 for the session, a level not seen since late September 2007.
The dollar's rally has fueled an exodus from commodities among large institutional investors who bought positions in gold, oil and other hard assets as a hedge against inflation or weakness in the US currency.