Gold Poised for Biggest Monthly Gain Since 1999 as Dollar Drops

Bloomberg latest article on Gold paints a bullish picture (28 Nov 2008 - Bloomberg - Gold Poised for Biggest Monthly Gain Since 1999 as Dollar Drops)

Gold headed for its biggest monthly advance since 1999 in London as a weaker dollar increased the appeal of the metal as a hedge against further declines in the U.S. currency. The dollar is poised for a third monthly decline against the yen and its first monthly loss versus the euro since June. Gold prices have also been buoyed by demand for physical metal and exchange-traded funds. Gold demand rose 18 percent in the third quarter, the World Gold Council said this month. "The dollar weakness is one reason but demand has also turned out to be stronger than expected in the third quarter," said Dan Smith, a Standard Chartered Plc analyst in London. Gold may reach $850 an ounce by the end of the year, he said.

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