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Spot
gold hit a high of $794.40 an ounce, its highest level since January 1980, which
was also driven by expectations the US Federal Reserve will cut interest rates
this week. Gold was last quoted at $783.80/784.30 in New York on Friday. Silver
rallied to its best level in eight months and palladium hit a two-week high. Physical
trade came to a standstill as jewellery makers watched gold prices gyrate. Gold
has risen more than 20 per cent this year as record-high oil prices elevate its
role as a hedge against inflation and a struggling dollar lifts its appeal as
an alternative investment. A
lower dollar makes gold, which is denominated in US dollars, cheaper for holder
of other currencies.
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