Comex Gold Rose

Gold futures on the Comex division of the New York Mercantile Exchange hit fresh six-month highs early Monday by the downturn in the U.S. dollar against other currencies, DJ reported.

The most active gold December contract settled $4.30 higher at $429.90 per ounce.

The dollar's tumble to eight-month lows against the euro overnight heightened dollar-denominated gold's allure for non-U.S. consumers and at the same time offered global investors an effective low-correlating alternative to the beleaguered U.S. currency.

Persistently high oil prices also served to keep many investors concerned about the prospects for industrial expansion and therefore aware of gold's safe haven and wealth preservation appeals as well.

The confluence of a sharply weaker dollar and high energy prices launched
December gold futures $5.50 higher on the open and then swiftly lifted quotes to their $432 six-month high within the opening minutes of trade.

Thereafter the slight steadying seen in the U.S. currency spurred some
investment bank selling at the higher levels as well as a slight let up in fund
interest, which served to tug December prices back below the $430 mark by the
end of play.

However, market watchers agree that further gains in gold could well be seen in the days ahead.