Business | Markets
Gold gains on firmer oil prices
Gold recovered yesterday from a 13-month low hit over-night in Asia, as an uptick in crude oil prices counterbalanced the stronger dollar, which is denting the precious metal's appeal as an alternative investment.
- Reuters
- Published: 23:55 October 23, 2008
London: Gold recovered yesterday from a 13-month low hit over-night in Asia, as an uptick in crude oil prices counterbalanced the stronger dollar, which is denting the precious metal's appeal as an alternative investment.
Spot gold was quoted at $727.05/$729.55 an ounce at 0917 GMT, against $727.65 late in New York yesterday. Earlier it touched a low of $718.20, its weakest since September 2007.
Crude bounced back after a 7.5 per cent fall yesterday as investors focused on expectations Opec will opt to cut production at its emergency meeting today.
Factors
However, a number of factors still count against gold.
"On the one hand there is the dollar, and on the other we have recession fears weighing down on gold," said Commerzbank analyst Barbara Lambrecht.
The dollar hit a fresh two-year high against the euro as worries over the outlook for the global economy sparked a flight to safety among investors.
The dollar is usually considered the most important external driver of gold.
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