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Gold under pressure while platinum tumbles almost 4%
Gold slipped as oil prices fell with Hurricane Gustav showing no signs of strengthening, while the dollar was stronger against the euro.
- Reuters
- Published: 22:02 September 1, 2008
London: Gold slipped as oil prices fell with Hurricane Gustav showing no signs of strengthening, while the dollar was stronger against the euro.
Platinum tumbled almost four per cent as poor car sales and a slowing US economy weighed on the metal, which has fallen nearly 40 per cent since hitting a lifetime high of $2,290 an ounce in March.
Gold was down at $828.20/$829.20 an ounce by 1124 GMT from $830.35/$832.35 an ounce late in New York on Friday.
"Gold will track the oil price almost a dollar for dollar," said analyst Robin Bhar at Calyon said.
The dollar index crept towards an eight-month high while the US currency rose against sterling to its highest level in more than two years. A stronger US dollar makes it more expensive for local currency holders. "This is just a broad consolidation of gold. There's resistance around $840-$850 an ounce," Bhar said.
But for the longer-term several analysts are bullish, citing strong jewellery and gold coin demand as providing support for the yellow metal.
"The first two weeks of August saw 60,000 gold coins sold in the US. The US mint describes the activity as unprecedented as new retail investors enter the market," said Meridian Fund Managers in a research note.
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