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Snipped from article.

NY Gold Hits 15-Year High in First '04 Session



January 5, 2004
By Alden Bentley

NEW YORK, Jan 5 (Reuters) - Gold futures traded above $425 an ounce for the first time in more than 15 years in New York Monday, extending its watershed rally on the first trading day of 2004 as investors continued to diversify out of the beleagured dollar.

Other precious metals surged as well, but gold is considered a form of currency and is seen as a hard alternative to the greenback. It built on last year's 20 percent gain as the dollar hit a new low against the soaring euro and fell to its cheapest level against the yen in three years.

At the COMEX division of the New York Mercantile Exchange, February gold rose to $425.50 an ounce, its highest since the summer of 1988, as London traders wrapped up for the day.

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Snipped from dailytimes.com (Pakistan)

Gold prices set to cross Rs 8,000 mark

KARACHI: Local gold prices, hit another life high for the second time in as many months, here Tuesday rising to Rs 7,946 per 10 grams in the country after prices in the international market touched at $427 per ounce.

“There are expectations that gold prices will rise to cross Rs 8,000 mark due to uncertainty in the Middle East,” said Haji Farooq, a gold importer. Another reason behind the recent surge is declining value of the greenback against the euro, he added.

“Investors have been placing their funds in gold instead of currency and capital markets,” said Mr Farooq.

Traders said the Middle East situation usually sets the trend of investment in the international gold market, and added that currently investors are switching over to gold in preference over the capital market due to uncertainty in the Middle East.

Local gold prices rose 6.85 percent, from Rs 7,436 per 10 grams on December 1 to Rs 7,946 on January 4. Prices have increased by Rs 201 per 10 grams in the first week of January.