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Gold Tops Off at $824/oz Overnight

Gold Seen Going Higher as Oil Could Test $100 per Barrel Tomorrow

2007-11-06 - By Luke Burgess

BALTIMORE, MD- Gold prices rose to another multi-decade high overnight to $824 an ounce following a spike in oil prices which stoked inflation jitters.

A weekly US report, due out tomorrow, is expected to show crude oil supplies in the world's top consumer dropping for another week. If this report shows a significant drop in oil supplies, crude prices could easily top the long-awaited $100 milestone and continue to push gold prices even higher.

The US dollar, meanwhile, was again near an all time low against the euro overnight. The USD index, a trade-weighted index that averages exchange rates between the US Dollar and six major world currencies, fell to its lowest levels ever to 76.035. We expect this index to continue to fall and believe it could even slip to as low as 60.

The next few days could be history. Keep a close eye on the energy, metals, and currency markets.

gold chart
oil chart