Business | Oil & Gas

Oil falls below $100 as gold plummets to one-month low

Gold dropped four per cent to a one-month low yesterday as investors took profits, while oil fell below $100 for the first time in two weeks on concerns about slowing global energy demand.

  • Reuters
  • Published: 23:54 March 20, 2008
  • Gulf News

London: Gold dropped four per cent to a one-month low yesterday as investors took profits, while oil fell below $100 for the first time in two weeks on concerns about slowing global energy demand.

Gold fell as low as $904.65 an ounce - a level last seen on February 18 - from $944.20/945.00 late in New York on Wednesday, to trade at $916.40/917.30 at 1111 GMT. Platinum, palladium and silver also slumped.

On Monday, gold hit a record high of $1,030.80 an ounce, up 23 per cent since the beginning of January.

Analysts however said they were still optimistic about gold's long-term appeal as a hedge against inflation as well as a safe-haven investment. "I think gold will remain under pressure today and it could drag on into next week. But I don't think we are too far off some good support levels which may see it rebound," said Daniel Hynes, metals analyst at Merrill Lynch.

Paring losses

Oil pared some losses after falling below $100 on growing concerns an economic slowdown in top consumer the US would undermine global energy demand. Oil prices lost almost $5 on Wednesday on economic concerns. London Brent crude was down to $99.92, after briefly rising to positive territory.

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