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...

Russian Finance Minister Alexey Kudrin poses with his G20 colleagues and central bank leaders during the family photo at the G20 Finance Ministers meeting at a hotel in St. Andrews, Scotland. REUTERS/POOL New
Pledge to support economies

G20 financial leaders pledged to prepare strategies to end emergency support for their economies, but to keep the aid flowing until recovery was assured.  Full Article | Related Story 

Photo

special coverage

Photo
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 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives

SHOWCASE

Sanjay Sinha
Balancing Act

In India, it is a tough choice between growth, managing inflation and financial stability.  Full Article 

 
Nipun Mehta
Road to Recovery

There needs to be an acceptable balance created between education and healthcare and infrastructure spend, says Nipun Mehta of SG Private Banking.   Full Article 

 
Robot Asimo

Snapshots of Honda Motor's humanoid robot Asimo  Slideshow 

 
Marketing Strategy
Marketing Strategy

Companies are now using direct marketing methods to sell their products.  Full Article 

 
Exit Plans
Exit Plans

Factbox - Stimulus exit plans for Asia-Pacific's big 5 economies  Full Article