Dollar weakens after Fed comments
Wednesday, 25 November 2009 18:43The price of gold reached a fresh record high this morning, while the euro moved back above $1.50 against the US dollar.
The single European currency hit a 15-month high of $1.5096 earlier and was trading at $1.5090 this evening.
The price of gold meanwhile struck a record high of $1,180.50 an ounce on the London Bullion Market.
Analysts said the moves were part of a trend whereby investors were selling the dollar and moving into other currencies and assets.
The dollar's weakness was reinforced by last night's signals from the US Federal Reserve that it would keep interest rates low for a long period. Minutes from the US central bank's November meeting showed that board members considered the dollar's fall against major currencies since March 'orderly', further persuading investors the US currency will stay weak.
Fears of a possible spike in inflation is also boosting gold, seen as a safe haven in times of rapidly rising prices.
