LONDON, 30 November 2005 — The price of gold rose above $500 an ounce for the first time for 18 years yesterday, propelled by strong buying from investment funds.
Gold hit $502.30 in overnight Asian trade before staging a retreat during European trading hours. The price was the highest since Dec. 14, 1987 when it had touched $502.97. Gold prices stood at $496.20 during yesterday afternoon trade on the London Bullion Market. Heightened demand also pushed platinum to a 25-year high point yesterday, breaching $1,000 to reach an intra-day $1,004 per ounce on the London Platinum and Palladium Market, a 19-percent rise since the start of 2005.
Meanwhile, the dollar was sharply higher across the board yesterday after a slew of strong US data suggested that US interest rates would continue to move higher in 2006. The euro fell to 1.1784 dollars in late European trading from 1.1844 dollars late on Monday in New York. The dollar stood at 119.50 yen from 118.87 yen on Monday. The euro was changing hands at 1.1784 dollars against 1.1844 late on Monday in New York, 140.83 yen (140.82), 0.6850 pounds (0.6846) and 1.5481 Swiss francs (1.5465). The dollar stood at 119.50 yen (118.87) and 1.3132 Swiss francs (1.3056).
