Do More With Reuters
Partner Services

Gold creeps higher on investor buying, dollar

Mon Jun 16, 2008 8:23am IST
 
Email | Print | | Single Page
[-] Text [+]

By Lewa Pardomuan

SINGAPORE (Reuters) - Gold rose further Monday after an early dip in the U.S. dollar and as recent weakness in bullion prices spurred demand from some investors, but weaker oil prices could cap the upside.

Gold rose to $871.80/872.80 an ounce from $869.00/870.00 an ounce late in New York on Friday, when it gained more than $1 an ounce as buyers covered short positions before the weekend.

Gold tumbled to its lowest level in almost six weeks around $856 last week on a firmer dollar which reduced its appeal as an alternative investment. The metal is well below a lifetime high of $1,030.80 hit in mid-March.

"Perhaps investors are slowly accumulating gold at the now cheaper prices. I think gold very much depends on the dollar now as it seemed to have gained quite a bit in the last week," said Adrian Koh, analyst at Philip Futures in Singapore.

"Gold's range is around $854 to $885 but technically, the dollar looks like it could move higher, which means that gold could be further weighed," he said.

The dollar was steady near a four-month high against the yen, having earlier fallen on disappointment that Group of Eight countries had failed to address the weakness of the U.S. currency at a weekend meeting.

But an increase in gold holdings on the exchange-traded fund

suggested investors were shifting their money back to bullion after the recent falls in prices, said dealers.  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