Gold News & Info

Source: Marketwatch

London— Gold futures traded close to the psychologically important $800-an-ounce level on Monday, gaining just days before a U.S. interest-rate decision as traders stepped forward to buy the popular inflation hedge. With the dollar at a new record low against the euro and a 33-year swoon against the Canadian dollar, gold futures rose as high as $798.30 an ounce, a new 27-year high. Gold has climbed sharply from the $650-an-ounce level back in mid-August.

"This positive trend is primarily due to the persisting weakness of the U.S. dollar," said Eugen Weinberg, an analyst at Commerzbank. Expectations are growing that the Federal Reserve will cut interest rates by at least a quarter of a percentage point on Wednesday, which has been weighing on the greenback of late. See full story.