Gold gains in Asia
Gold prices rose in Asia as crude oil traded near a two-month high, stoking concern over rising raw material prices and prompting investors to buy the precious metal as a hedge against inflation.
By Agencies |
SEATTLE: Gold prices rose in Asia as crude oil traded near a two-month high, stoking concern over rising raw material prices and prompting investors to buy the precious metal as a hedge against inflation.
Crude oil gained 7.1 per cent last week on signs the Organisation of Petroleum Exporting Countries may cut output a second time in two months just as cold weather boosts US demand. Some investors buy gold to preserve purchasing power in times of accelerating inflation.
Gold gained 2.63 dollar to 648.22 dollar an ounce. Gold futures for Feb. delivery gained 2 dollar to 652.60 dollar an ounce on the New York Mercantile Exchange. A futures contract is an obligation to buy or sell a commodity at a set price for delivery by a specific date.
Gold and oil often move together. Gold futures reached a record 873 dollar an ounce in January 1980 after oil prices doubled in a year, sparking a surge in the inflation rate.
The dollar's decline against the euro this morning also supported gold. The US currency fell 1.9 per cent against the euro last week.
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