Metals - Gold tops 655 usd as soft dollar, steady oil lend support |
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Published
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Wed, 07 Feb 2007 12:31
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LONDON (AFX) - Gold extended yesterday's gains to climb above 655 usd as the precious metal found continued support from firmer crude oil prices and a modestly softer dollar.At 10.59 am, spot gold, which earlier hit an intra-day high of 656.00 usd an ounce, was quoted at 654.65 usd, up from the 653.00 usd level seen in late New York trades yesterday.'Today oil is firmer and the euro is holding the higher levels so that should give support to precious metals,' said Gerry Schubert, director of precious metals trading at Fortis Bank.Oil remained strong ahead of the release of weekly US stocks data, while the dollar has held at slightly lower levels against the euro after trending lower yesterday.Gold often moves counter to the dollar as it is seen as an alternate asset to the US currency. The metal usually moves in line with oil, as it is bought as a hedge against oil-led inflation.Schubert noted gold has been holding its own this week irrespective of factors like the dollar.'The market looks pretty stable ... buying overnight from TOCOM has continued. Its still relatively quiet today but the market has strong sentiment, I'm looking for gold to regain the 660-664 usd level this week,' he said.Gold hit a six-month high around 661 usd last week.'While gold is struggling to conquer resistance above 656 usd, expectations of more favourable dollar/oil movements, coupled with ongoing unrest in Iraq and continued defiance by Iran and North Korea to halt their nuclear programmes, will draw investors towards gold,' said TheBullionDesk.com analyst James Moore.Geopolitical tensions benefit gold as they increase the appeal of the metal as a safe haven asset.Regardig trading in other precious metals, silver was edged up to 13.67 usd an ounce against 13.63 usd yesterday, platinum rose to 1,190 usd against 1,181 usd and palladium dipped to 343 usd against 338 usd.maytaal.angel@afxnews.comma/jrCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Precious metals at record high prices 