Do More With Reuters
Partner Services

Gold above $900 on record oil, hits 2-week high

Mon Jun 9, 2008 10:14am IST
 
Email | Print | | Single Page
[-] Text [+]

By Lewa Pardomuan

SINGAPORE (Reuters) - Gold rose to its highest level in almost two weeks on Monday, moving back above $900 as speculative buying picked up after oil hit a record high, lifting the metal's appeal as a hedge against inflation.

Platinum also jumped to its highest in nearly two weeks on worries about supplies in main producer South Africa. Palladium was firmer, while silver struggled to sustain early gains.

Gold rose as high as $904.10 an ounce, its highest level since May 28, up from $896.80/898.20 late in New York on Friday and off a three-week low of $864.45 on Thursday.

"It looks like we could head higher. Gold remains on a steady 1-month uptrend. Thursday's reversal off the supports indicated that we could see higher gold prices," said Adrian Koh, an analyst at Philip Futures in Singapore. "Nearby uptrend support will probably be around $880."

Oil fell 82 cents to $137.72 a barrel on Monday, having hit a record $139.12 on Friday amid frenetic buying triggered by a tumbling dollar and comments by an Israeli minister about a possible attack on Iran.

A weaker dollar helped gold as it boosted the metal's appeal as an alternative investment to stocks and bonds. The euro was barely changed at $1.5770 after edging up to $1.5800 on trading platform EBS.

Record high oil and uncertainties in the dollar outlook pushed up gold to a record high of $1,030.80 in mid-March.

"I'm more concerned about the dollar and the euro as we seem to be nearing key technical regions. So a move over those levels could just spark another rally in gold," said Philip's Koh.  Continued...

Dubai Debt Fears

Villas are seen on the The Palm, Jumeirah, with Atlantis, The Palm, under construction on the breakwater (crescent), May 3, 2008.  REUTERS/Jumana El Heloueh

Banks outside the Gulf played down their exposure to Dubai debt, after fears the emirate could default and even derail world economic recovery prompted a sell-off in global markets.  Full Article | Slideshow 

India Investment Summit 2009
India Investment Summit 2009

Top executives and bankers discuss their own plans and the broader opportunities and challenges for India.  Full Coverage 

Photo
People stroll outside the Taj Mahal hotel ahead of the first anniversary of the militant attacks in Mumbai, November 24, 2009.  REUTERS/Punit Paranjpe
Investors worry about another attack

The risk of militants striking again worries investors who fear that a second attack similar to last year's Mumbai raids could shake the economy.  Full Article | Full Coverage 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives

road to Copenhagen

BLOGS

Photo
Calculated Move

Reliance aims big with $12 bln bid for LyondellBasell.  Blog 

SHOWCASE

Capital Raising
Capital Raising

Analysis - China banks' rush for billions could trip markets.  Full Article 

 
Photo
Bonus Payout

"Bonus" has become a dirty word on Wall Street.  Full Article 

 
Bubble trouble?
Bubble trouble?

With the BSE Sensex at around 17,000 points, are the Indian equity markets looking at a possible bubble?   Commentary 

 
Funding Blues
Funding Blues

A popular tactic used by Indian brokerages to raise money for rich clients is likely to be banned.  Full Article 

 
Recovery Path
Recovery Path

Indian techie logging out of downturn gloom.  Full Article 

 
Central Banks Cautious
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.   Full Coverage 

 
Risky Proposal
Risky Proposal

Rupert Murdoch courts trouble if he blocks Google on news.  Full Article