Gold slips 1% as oil falls

London: Gold slipped more than one per cent yesterday as oil prices eased and as investors, disappointed at the metal's failure to break technical resistance above $885 (Dh3,250.6) an ounce, sold bullion in favour of more buoyant assets.

But the outlook for the precious metal still remains favourable, traders said, with the dollar again weakening against the euro and investors still concerned about the outlook of the global economic situation.

Spot gold was quoted at $847.80/849.80 an ounce at 15.03 GMT, against $863.35 late in New York on Tuesday.