Capital Gold Group Report: Gold Back Above $800/oz - Bargain Hunters are Buying

August 18, 2008

(RTTNews) - After falling sharply last week, the price of gold regained some ground over the course of the trading session on Monday. The price increase came as traders did some bargain hunting amid a decrease in the value of the U.S. dollar.

While ending the session off its best level of the day, gold for December delivery closed up $13.60 at $805.70 an ounce after falling more than $70 an ounce last week to a multi-month closing low of $792.10 an ounce.

Bargain hunting contributed to the increase by the price of gold, with some traders moving their money out of the U.S. dollar and into the precious metal. The dollar is giving back some ground after moving sharply higher in recent sessions.

Despite the price increase, the price of gold remains well off its recent highs set in mid-July and is down more than $200 from its record high of $1,033.90 an ounce set on March 17.

The U.S. dollar index has risen more than 7 percent since mid-July, making gold more expensive for foreign investors.

However, it is worth noting that the dollar's recent strength is due more to indications of weak economic conditions in other countries rather than a notable improvement in the economic situation in the U.S.

Some economists have also pointed out that the recent strength in the value of the U.S. dollar could lead to a reduction in demand for U.S. exports, which has been a key driver of economic growth in the past two quarters.

Capital Gold Group, gold group, gold, gold prices, gold news, gold coins, gold bullion, gold IRA, IRA gold