Tuesday, February 22, 2005

Gold Price higher as dollar plumments

The gold price soared past the $430 price barrier on Tuesday as the US Dollar plummeted on worries central banks were diversifying from U.S. dollar assets.

"I think gold has found the catalyst it needs to break through this $428-32 resistance band and can now look to target $440," analyst James Moore of TheBullionDesk.com said.

The US dollar plummeted after South Korea's central bank said on Monday it planned to diversify its currency reserves, which are the world's fourth largest, into a greater variety of currencies.

Gold has reverted to its normal gold fundamentals, having shaken off bearish sentiment from the possibility of IMF gold sales or revaluation.

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