|
|
|
|
|
Metals - Gold rises towards 800 usd on dollar weakness, record oil prices UPDATE Thomson
Financial Gold edged up towards 800 usd as the dollar sank to fresh lows against other major currencies and as oil hit record highs in London and New York. The metal moves in the opposite direction to the US currency as weakness in the greenback makes dollar-denominated gold cheaper for those trading in other currency. The dollar hit a record low of around 1.485 this morning after the US Federal Reserve last night cut its economic growth forecast for next year to 1.80-2.50 pct from its June estimate of 2.50-2.75 pct, while inflation is now expected to slow to 1.8 pct from around 2.95 pct this year. Sky-high oil prices, meanwhile, sparked fears of inflation, to which gold is often bought as a hedge. Oil rose close to 100 usd/bbl after New York's WTI benchmark hit a record high price of 99.29 usd earlier.
Also boosting investment were heightened fears that equity markets are headed for further weakness which spurred buying in the metal as a safe haven asset. At 10.28 am, spot gold was trading up at 796.05 usd per ounce against 791 usd in late New York trade yesterday. Earlier the metal hit an intra-day high of 807.10 usd per ounce.
|
||||
