Gold prices are likely to rise as the US dollar continues to weaken
Gold prices are likely to rise as the US dollar continues to weaken against the euro.
The U.S. currency weakened Thursday to $1.35 per euro for the first time on concern foreign demand for U.S. assets will wane and President George W. Bush won't try to stem the currency's decline. The dollar is heading for its third consecutive year of losses against the yen.
Gold for immediate delivery rose $5.48 at $442.2998 an ounce in London at 8:21 a.m. Trading of gold futures in New York stopped for the Christmas holiday.
The dollar was trading at $1.3507 against the euro, compared with $1.3514 yesterday, according to EBS, an electronic currency-dealing system. The dollar is down 6.8 percent against the euro and 3.2 percent versus the yen this year.