gold keeps rising

Gold keeps rising as US dollar falls

The price of gold has continued its recovery from a recent slump, helped by a decline in the US dollar.

Gold has risen around $US30 an ounce in the past 36 hours to be trading at $US1,445 an ounce by 2:22pm (AEST).

The precious metal has now bounced back by around 9 per cent since hitting a low around $1,322 an ounce on April 16, after having fallen around 16 per cent in less than a week.

Today's leg of the rise has been helped by a weaker US dollar, the currency most gold trades are denominated in, which has pushed up the relative value of the metal.

The US dollar fell on a poor reading on a much bigger-than-expected slide in durable goods orders during March, with the 5.7 per cent fall almost twice the expected 3 per cent decline that economists' forecasts centred on.

A weaker run of economic data from many major economies has traders believing that easy monetary policy is likely to remain in place for some time to come.

As a result, the greenback fell against the Australian dollar, with the Aussie up around 0.8 of a cent on its lows from yesterday, after weak inflation prompted increased speculation of more Reserve Bank interest rate cuts.

The Australian dollar was fetching 103.1 US cents at 2:36pm (AEST).

http://www.abc.net.au/news/2013-04-25/gold-keeps-rising-as-us-dollar-falls/4651406?section=business