"'Inflationary expectations seem to be rising in the U.S. and you could argue some of those expectations are coming from rising commodity prices,' said Robert Rennie, chief currency strategist for Australia's Westpac bank.
Gold continues to garner support from concerns over the implications of a showdown between Iran and the U.S. over Tehran's nuclear ambitions.
At the same time, speculation that China and other Asian countries may be turning to gold as a way to reduce their foreign reserve holdings -- mostly denominated in dollars -- on a weakening U.S. dollar is also spurring investor sentiment, participants said.
'With all the rumors still about of China and the Iran issue still playing on people's minds, the dollar's not really driving gold at the moment,' said Darren Heathcote, trading head at Rothschild Australia."
Thursday, May 11, 2006
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Posted by miken at 12:05 PM