Gold Gains to Record in Asia on Weak Dollar, Commodities Rally

By Feiwen Rong and Glenys Sim

Jan 9, Bloomberg

Gold rose to a record as a weak dollar increased demand for alternative investments and as energy and industrial metals gained.

Gold, copper and nickel are off to the best start since at least 1980 as funds rebalance their portfolios and pour more money into commodities, according to traders and analysts including Jonathan Barratt, managing director at Commodity Broking Services in Sydney.

``Gold continues to attract investor interest, reflecting the fragility of the dollar, expectation of lower U.S. interest rates, and worries about the outlook for inflation partly linked to the high level of oil,'' David Moore, commodity strategist at Commonwealth Bank of Australia, said in a report today.

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photo source: World Gold Council via Bloomberg News