Capital Gold Group Report: Precious Metals Spike on Weak Dollar

 NEW YORK (AP) - Precious metals prices soared Thursday, with gold, silver
and platinum hitting record highs after a drop in the dollar led traders to
shift funds into hard assets as safe-haven investments.

Other commodities traded mixed, with crude oil retreating from $100 a barrel
and agriculture futures rising.

The dollar's decline versus the 15-nation euro has been a major driver of
precious metals, which are seen as safer alternative investments used to hedge
against inflation and economic and political uncertainty. Platinum has gained 38
percent this year, gold 11 percent and silver 19 percent.

"It's a dollar play today. Every day there's a new reason to worry, and
there seems to be a drive toward owning hard assets such as precious metals,"
said George Gero, senior vice president at RBC Capital Markets Global Futures in
New York.

The dollar fell Thursday against the euro, which fetched $1.4818 in trading
in New York. A weaker greenback encourages U.S. investors to turn to gold
because the metal is known for holding its value. It also encourages foreign
investors to buy the dollar-denominated metal, because the cost is not as high
for those with stronger currencies.

Gold jumped on the dollar's drop, with the April contract rising $11.40 to
settle at $949.20 an ounce on the New York Mercantile Exchange, after earlier
touching an all-time high of $958.40. Gold broke the $950 barrier for the first
time Wednesday, raising expectations that the metal could breach the
psychologically important $1,000 mark in coming weeks or months.

Silver rose to its highest level since 1980, with the March contract hitting
a record $18.075 an ounce on the Nymex before settling at $17.835, up 19 cents.
Platinum also extended its record-setting rally amid supply concerns fed by
a power shortage in South Africa. An ounce of platinum for April delivery surged
$49.40 to settle at $2,188.20 on the Nymex, after earlier pushing to an all-time
high of $2,194.80.

Nymex copper for March delivery added 10.20 cents to settle at $3.8105 a
pound after falling back from a record $3.8465.

The bullish run by precious metals has been boosted by a rally in oil, which
on Wednesday closed at a record $100.74 a barrel. Oil prices fell Thursday after
the U.S. government reported that national crude oil supplies rose more than
expected last week.

Copyright 2007 Associated Press. 

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