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Gold hits new record high as US dollar

weakensBBC News; Sunday, April 29, 2011 22:48 GMT

 The price of the precious metal hit a new record high for the third straightday of $1,569.30 on the back of a weakening US dollar.

 The gold price has risen 7% over the last month as investors have soughta save-haven against inflation and the softer US dollar.

In late US trade the precious metal reached a record of $1,569.30 anounce.

 Traditionally, investors turn to gold at times of uncertainty and risingprices.

But analysts also said the falling US dollar had helped bolster the metal'svalue.

Over the past year, the US dollar has dropped against the euro and thepound by 12% and 9% respectively.

 The dollar continued to slide against several major currencies after neweconomic data was released showing that US growth had slowed in thefirst quarter of 2011 to 1.8%.

As gold is priced in dollars, any fall in the currency means it becomescheaper for investors using other currencies to buy.

"If the dollar continues to weaken, then it's only likely to boost gold as wellas silver as the inverse relationship between the two assets persists," said

Ong Yi Ling, investment analyst at Phillip Futures in Singapore.

"I would say that for gold I am still looking for it to hit $1,600 this year."

Silver

Meanwhile, the price of silver remained in sight of record highs thanks tothe weakening dollar as well as increased demand in Asia.

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As the global recovery continues, some analysts expect demand for themetal, which is used in industry such as electronics, to rise further.

But others warn the metal's high price could come at a cost.

"In the long term, I think, if we see silver prices at such a high level, thenit could hurt the industrial demand," added Ong Yi Ling.

In 2007, 455.5 million ounces of silver were used for industrialapplications according to the Silver Institute.

“in sight” : known; expected

The end of the project is finally in sight.

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VOCABULARY 

Identify what the followingwords mean. Choose from the

given choices.

1. abandon means to:bring up / get up / fend for / give up

2. synthetic means:--taking delight in beauty--kindness--of outstanding significance

--not genuine or natural

3. partnership means:--something that is lost orsurrendered as a penalty--a cooperative relationship betweenpeople or groups--amount added or deducted basedon qualifying circumstances

--a grant paid by a government to anenterprise

4. Which of the following would mostlikely be considered gigantic?a twenty dollar bill / an anthill / aredwood tree / a dog biscuit

5. assembly means:instrument / institution / novel /

forum

6. expounding means to:--cause extensive destruction or ruinutterly ---add details, as to anaccount or idea--take the place of 

GOLD

Spend one minute writing downall the different words you

associate with the word“GOLD”. Share your wordswith your teacher and talk

about them.  Together, put the

words into different categories.

MONEY 

Spend one minute writing downall the different words you

associate with the word“MONEY ”. Share your words

with your teacher and talk aboutthem.

  Together, put the words

into different categories.

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SYNONYM MATCH

Match the following words to their corresponding synonym.

PHOTO DESCRIPTION

Describe and share your thoughts on the photoshown below.

 

1. weaken

2. inflation

3. uncertain

4. bolster

5. boost

6. reach

7. precious8. demand

9. data

10. record

a) information

b) register

c) support

d) increase

e) extend

f) lessen

g) request

h) valued

i) inconsistent

 j) promote

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DISCUSSION Try to answer the following questions and discuss them with

your teacher.

• In the line of business, which is of more value: gold orcurrency? Why?

• What can you tell about the relationship of gold tomoney?

• Are gold and currency of equal value?• How do precious metals help during uncertain times?• Why do you think businessmen turn to gold when

prices rise or when dollars weaken?• Can gold replace money?

“All the gold which is

under or upon earth is not 

enough to give in exchange for virtue.”~~ Plat

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