Bearish Dollar Helps Boost Gold Prices

The price of gold continued to move up throughout European trading yesterday, as a weakened dollar led to increased demand among investors. Typically, gold prices go up when the dollar is weak, as it makes the precious metal more affordable for international buyers. Gold peaked at $1616.23 an ounce during mid-day trading, before staging a very slight downward correction. Today, gold may be able to extend its recent gains if the USD maintains its current downward trend. At the same time, the euro-zone economic recovery remains extremely fragile. Any disappointing news out of the region may result in risk-aversion which could weigh down on the price of gold.

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