March 3, 2008
|"As long as the dollar remains under pressure, I would expect that gold prices would continue to rise," explains Michael Widmer, metals analyst at Lehman Brothers.|
“As long as the dollar remains under pressure, I would expect that gold prices would continue to rise,” explains Michael Widmer, metals analyst at Lehman Brothers.
Gold edged closer to $1,000 on Monday, setting a record high for the fourth straight day as the dollar tumbled and as crude oil held near an all-time high.
Silver jumped above $20 an ounce for the first time since November 1980, while platinum and palladium held near highs.
Spot gold jumped as high as $989.30 an ounce and was at $981.20/982.00 at New York’s last quote at 2:15 p.m. EST, up from $973.30/973.75 in New York late on Friday.
Gold has gained around 18 percent in 2008 as investors shift some of their money into the precious metal on expectations of more interest rate cuts in the United States, volatile stock markets and fears of rising energy costs.
“People are bullish because the macro-economic backdrop, especially in the United States, is still deteriorating. There are a lot of incentives in the market for people to actually go long on gold at the moment,” said Michael Widmer, metals analyst at Lehman Brothers.