Business | Markets
Gold slips 2% as dollar strengthens
Gold prices slipped more than 2 per cent in Eur-ope yesterday as the dollar strengthened to a two-year high against a basket of currencies, and oil prices slipped nearly $3 a barrel.
- Reuters
- Published: 23:56 October 22, 2008
London: Gold prices slipped more than 2 per cent in Eur-ope yesterday as the dollar strengthened to a two-year high against a basket of currencies, and oil prices slipped nearly $3 a barrel.
Spot gold fell to a session low of $753.70 an ounce before recovering to $755.60/$758.10 at 0941 GMT. Late in New York on Tuesday it was quoted at $770.10 an ounce.
A slide in the cost of crude and other commodities such as industrial metals is negating fears over inflation, against which gold is often bought as a hedge, and pushing prices of the precious metal lower.
"The focus has moved to the deflationary, recessionary environment," said Simon Weeks, head of precious metals at the Bank of Nova Scotia.
"You would expect commodities to come off in that kind of environment, and gold has been caught up in that."
Platinum tumbles
Meanwhile, platinum tumbled more than 6 per cent as the stronger dollar added to pressure on the metal, which has been weighed down by fears over falling demand from carmakers.
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