Tuesday, February 15, 2005

Gold Traders await US Trade Data and Greenspan

The gold price fell from a two-week high in London as gold traders await a report that may show purchases of U.S. securities by overseas investors slowed in December and this weeks testimony to Congress by Federal Reserve Chairman Alan Greenspan.

The gold price rose 3.2 percent in previous four sessions as the dollar weakened and Asian traders returned to work following Chinese New Year celebrations. The dollar traded near a one-week low against the euro and the yen today.

Foreign investors may have bought a net $55 billion in U.S. financial assets in December, down from November's five-month high of $81 billion, said Steve Pearson, chief currency strategist in London at HBOS Plc.

A drop will highlight that the U.S. has failed to lure enough overseas capital to offset a record current-account deficit and maintain the dollar's value.

Source: Bloomberg.com Latin America. Danielle Rossingh

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