Dollar falls, sending gold to record high

Posted: November 18, 2009 in News, Politics
Tags: , ,

LONDON (AFP) – The dollar fell on Monday as China accused the United States of increasing protectionism and following unexpectedly strong Japanese economic growth figures, pushing gold prices to a record high point.

US President Barack Obama is in China for a three-day mission aimed at convincing Beijing that Washington is its partner, not its rival.

As the dollar dropped against the euro and yen, gold struck an all-time peak of 1,133.20 dollars an ounce.

In late morning trading here, the euro climbed to 1.4969 dollars from 1.4918 dollars late in New York on Friday.

Against the Japanese currency, the dollar fell to 89.42 yen from 89.66 yen late on Friday.

“Far better than expected Japanese third-quarter GDP data…spurred risk appetite,” said Jane Foley, an analyst for online trading firm Forex.com.

“This pushed the euro close to 1.50 dollars in early European hours.”

Japan’s gross domestic product (GDP) grew 1.2 percent in the third quarter of 2009 from the previous quarter — the fastest pace in two-and-a-half years and much better than expected, the government reported.

The euro also gained as higher commodity prices, driven by hopes of a global economic recovery, spurred investor risk appetite, market watchers said.

To read more: http://news.yahoo.com/s/afp/20091116/bs_afp/forexeurope_20091116120712

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