Gold gains for fifth day as greenback drops

chart from goldprice.org

From The Sydney Morning Herald:

Gold gained for a fifth day, the longest streak in two months, as a drop in the US dollar may spur demand for precious metals as an alternative asset.

The US dollar fell to a record against the yen and declined against the euro after European leaders agreed to expand a bailout fund by four or five times, to about 1 trillion euros. Gold has climbed 23 per cent this year as the dollar fell 5.7 per cent against the euro.

"The dollar's weakness and inflationary fears because of Europe's actions are making people move towards gold," Frank Lesh, a trader at FuturePath Trading in Chicago, said.

Read more: http://www.smh.com.au/business/markets/gold-gains-for-fifth-day-as-greenback-drops-20111028-1mmny.html#ixzz1c18NSrzp