Gold Falls From 15-Year High as Dollar Rises From Record Low

By Choy Leng Yeong
Nov. 8 (Bloomberg) -- Gold prices fell from a 15-year high
as a gain in the dollar's value boosted the cost of precious
metals for buyers holding euros.
The euro fell from close to a record against the dollar
after European Central Bank President Jean-Claude Trichet said
the currency's rally wasn't ``welcome.'' Gold, sold in dollars,
had reached a 15-year high of $436.10 an ounce as the dollar
dropped to its lowest against the euro since the single European
currency's debut in 1999.
The ``dollar is showing some strength'' and weighing on
gold, said Carl Birkelbach chief executive of Birkelbach
Investment Securities Inc. in Chicago. ``Gold just ran up fast.
On a daily basis, it may have setbacks, but its trend is up.''
Gold futures for December delivery fell $1.60, or 0.4
percent, to $432.70 an ounce at 8:53 a.m. on the Comex division
of the New York Mercantile Exchange. Prices earlier rose as much
as 0.4 percent to $436.10, the highest for a most-active contract
since December 1988. A futures contract is an agreement to buy or
sell a commodity at a specified price and date.

--Editor: McKiernan

Story illustration: To chart Comex gold prices in the past
year, see {GC1 <Cmdty> GPO D <GO>}. For a series on gold,
see {CNP 04676240104 <GO>}. Press the space bar to pause and
the GO key to resume. For more commodity news, see
{CTOP <GO>}.

To contact the reporter on this story:
Choy Leng Yeong in Seattle at (1) (206) 224-2893 or
clyeong@bloomberg.net

To contact the editor responsible for this story:
Steve Stroth at (1) (312) 692-3738 or sstroth@bloomberg.net.

[TAGINFO]
NI GLD
NI CMD
NI CMDX
NI US
NI PCS
NI MET
NI MNG
NI GLDMARKET
NI PCSMARKET
NI GFX