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Tuesday, May 09, 2006

Gold futures top $700

Gold Heads for $1000/oz. + , sez Mr Ken.

MarketWatch



Gold futures top $700 for first time in almost 26 years.

Tuesday May 9, 11:58 am ET By Myra P. Saefong - (Yahoo Finance)

Gold at nearly 26-year high as Iran optimism fades, U.S. dollar weakens

SAN FRANCISCO (MarketWatch) --

Gold futures climbed above $700 an ounce Tuesday for the first time since October of 1980 after hopes for resolution over Iran's nuclear program faded and the U.S. dollar weakened, prompting investors to seek refuge among the precious metals.

"Gold ... thrives on uncertainty," said Jon Nadler, an investment products analyst at bullion dealers Kitco.com.

"While one can always mitigate risk to a certain extent (with efficient portfolio hedges), one cannot as successfully hedge for uncertainty and the impacts of same on conventional portfolios," he said. "That is precisely the time when gold shows its long-established attributes best."

Gold for June delivery climbed as high as $700.50 an ounce on the New York Mercantile Exchange, the highest futures level in almost 26 years, according to montly charts. The contract was last up $20.40, or 3%, at $700.30. Prices closed lower for the first time in seven sessions Monday, as traders locked in some of the metal's recent sharp gains.

Gold prices have climbed $29 since the beginning of May alone, propelled higher by a now familiar list of factors, including inflation fears, geopolitical worry, a weaker dollar and burgeoning demand from investment funds seeking better returns than are currently available in other asset classes...


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