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Drifting down but gold, oil rally not over Nick Trevethan SINGAPORE -- Gold and oil fell on Monday after investors decided to lock in profits from last week's gains, but prices were expected to head higher with both markets seen testing record highs in the near term. Oil was trading just over $1 short of Friday's contract high of $96.24 a barrel, while spot gold was 0.5 percent lower than Friday's 28-year peak and eyeing January 1980's all-time high of $850 an ounce. Concerns about holding paper assets in times of economic uncertainty were stoking demand for physical investments such as precious metals and oil and could attract more money to the asset class. "The market is hovering around gold and oil," Jonathan Barratt of Commodity Broking Services said.
"The immediate feeling is that you don't really want to go into equities and certainly don't want to go into bonds. People aren't even looking at softs and infrastructure commodities." Spot gold fell to $802.70/803.50 at 0646 GMT from $807.70/808.50 in late New York. Gold hit an intraday high of $807.60 on Monday, just below Friday's 28-year high of $807.70. "I am sure gold will reach $850 by the end of this year," said Yukuji Sonoda, precious metals analyst at Daiichi Commodities in Tokyo.
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