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Last Updated: Tuesday, 09 February 2010 06:28:42

Commodity Report

Published: 2009/11/11 06:38:01 AM

GOLD prices rallied toward recent record highs above 1110/oz yesterday, reversing earlier losses, as the dollar erased initial gains against a basket of six major currencies.

Spot gold hit a session high of 1109,20/oz and was at 1106,90 at 6pm, against 1103,85 late in New York on Monday.

The market had earlier yesterday dipped as low as 1096,60.

The metal also found support from renewed investor interest after the International Monetary Fund announced last week it had sold 200 tons of gold to India’s central bank, which prompted the metal to reach record highs.

“Given all the noises hedge funds have been making, plus all the noise surrounding further potential central bank buying, it is difficult to see much of a downside,” said Société Générale analyst David Wilson. I-Net Bridge

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