# Gold price closes in on $1,200



## alshangiti (26 نوفمبر 2009)

This is Money & Reuters
26 November 2009, 3:04pm 
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The price of gold soared again today leaving the cost per ounce a whisker away from cracking the $1,200 level. 

 





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The gold spot price surged to $1,195 this morning as the dollar saw its biggest fall in 15 months, raising hopes that central banks would jump in to buy more bullion in their effort to hedge against a falling currency. 

Yesterday, demand was buoyed by a news report that India may consider buying more bullion from the *International Monetary Fund*. The *IMF* also confirmed that Sri Lanka had bought 10 tonnes of gold. 
India bought 200 tonnes of IMF gold ealier this month triggering the recent leg up in the rally in bullion. 
'Everybody is bullish on gold, and everybody is looking at the signal central banks are sending,' Dick Poon, manager of precious metals at Heraeus in Hong Kong, told Reuters. 
'It's not just India or China, but most of the central banks, as well as funds, have changed their portfolios to include gold. So, everybody is looking at how much money they will invest in gold.' 
Traders are currently pouncing on any speculation of *central bank* buying. Following the early excitment today, the price of gold eased back to $1,082 by 3pm. 

A decline in the dollar throughout 2009 has also helped support gold demand. It has sparked a debate on the greenback's long-term propsects as the world's reserve currency. Central banks are expected to become net buyers of gold this year for the first time since 1988. 
Investors have also historically turned to gold to protect them against inflation, prefering to hold 'real assets'. While consumer price rises have been quelled and replaced by *deflation* in Europe and the US during the *financial crisis*, expectations of a return to inflation have risen, especially in the UK, in recent months


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