Business | Markets
Gold gains as greenback weakens
Gold firmed on Tuesday, benefiting from a softer dollar and a recovery in equities, with rising oil prices also boosting interest in the precious metal.
- Reuters
- Published: 23:31 October 28, 2008
London: Gold firmed on Tuesday, benefiting from a softer dollar and a recovery in equities, with rising oil prices also boosting interest in the precious metal.
Spot gold rose to a session high of $755.00, before slipping back to $734.60/$737.10 at 1424 GMT. Late in New York on Monday it was quoted at $729.60 an ounce.
Current moves in the gold market are pretty much US-dollar driven, said Commerzbank senior trader Michael Kempinski, adding that gold's fall during the market turmoil of recent weeks has tempered the metal's safe haven appeal.
"We see good physical demand below or around $700 an ounce," he said.
The dollar slipped against the euro after earlier hitting a 2-1/2 year high versus the single currency, as risk aversion eased.
Traders are eyeing the two-day rate-setting meeting of the US Federal Open Market Committee, which is expected to deliver a decision today.
The Fed is expected to cut lending rates by half a percentage point to 1 per cent, the lowest since June 2004, in a bid to calm turmoil in the financial markets.
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