Wednesday, July 24, 2013

Gold love for the Aussie dollar


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The Australian dollar has hit a one-week high, getting a boost from the rising gold price and a good performance on Asian share markets.

In late local trade, the dollar was buying 92.59 US cents, up from 92.22 cents on Monday. During the local session it peaked at 92.86 US cents, its highest level since July 17.

The Shanghai and Hong Kong share markets rose around two per cent and the gold price has stayed above $US1300 per fine ounce for the entire local session for the first time in over a month.

The spot price of gold in Sydney finished at $US1331.05 on Tuesday, up from $US1317.70 on Monday.

CMC Markets sales trader Betty Lam said the gold price surge has helped the Australian dollar by putting downard pressure on the US dollar.

‘‘The Aussie dollar is also the happy recipient of the recent gold love-fest,’’ she said. ‘‘We see the local currency building on its recent advances for the third consecutive day.’’

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