Gold extends gains after central banks' move

Risa Maeda
Reuters
Thursday, Sept 18, 2008

Gold rose on Thursday after a coordinated effort by central banks to stabilize the dollar, consolidating bullion's biggest-ever one-day rise the previous day and ensuring its status as a safe-haven asset was intact.

The Federal Reserve and the world's top central banks offered to pump billions of dollars into global money markets on Thursday in a coordinated effort to ease a funding squeeze triggered by the upheaval on Wall Street.

The concerted action follows a rout in financial markets, roiled by fears of more Wall Street failures in a week that has seen Lehman Brothers file for bankruptcy, Merrill Lynch lose its independence and a $85 billion U.S. government bailout of insurer AIG.

"Doubts stay over the dollar after the central banks' move," said Tatsuo Kageyama, analyst at Tokyo-based Kanetsu Asset Management Co.

"The question -- who's going to be the next -- is still hanging over. Even if the dollar rose, people would think that is just a temporary rise," he said.

[DISCUSS THIS STORY IN OUR FORUM]




Paul Joseph Watson: Internet Censorship a Growing Cancer



Steve Watson: British Kids Encouraged To Become "Climate Cops"



Steve Watson: Terror Stopped For Putting My Hand in My Pocket



Paul Watson on the Alex Jones Show: The state wants your children.
 


Web PM




Copyright © Global Matrix Enterprises 2001-2008. All rights reserved. Legal Notice.