Business | Markets
Gold rises above $972 on rebound in oil prices
Gold recovered yesterday after a rebound in oil prices boosted buying of the precious metal as a hedge against fuel-led inflation.
- Reuters
- Published: 00:06 July 18, 2008
London: Gold recovered yesterday after a rebound in oil prices boosted buying of the precious metal as a hedge against fuel-led inflation.
Spot gold rebounded to hit a day high of $972.90, having slipped as low as $953.200 earlier in the day when oil prices dipped. At 1456 GMT, spot gold was trading at $971.70/972.70 against $963.10/964.10 in late New York trades on Wednesday.
On Tuesday, gold hit a four-month high of $987.75 an ounce after rallying on concerns over the stability of the US financial system, with investors looking for a safe store of wealth during times of uncertainty.
"Gold's mainly been tracking oil and the dollar today, having risen largely on banking concerns over the past week," said Standard Chartered trader Tony Dopra. "I think we could see it break higher due to the inflationary and negative economic news coming out."
Platinum fell to its lowest level since early May after South African power utility Eskom said it was confident the country would go through the winter months without power cuts. Energy shortages in the world's number one platinum producer have boosted prices due to concerns mine output would be constrained.
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