Finotec News Archive - May 05 2008
Gold on the rise again
Drivers of the recent rally in the gold price to $1,000 an ounce are still bubbling awayTammy Wall
05 May 2008
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Gold rose in Asia after falling to the lowest in four months as crude oil's rally above $116 a barrel and gains in base metals bolstered the appeal of the precious metal as a hedge against inflation. Gold fell for the third straight week to a four-month low at $846.22 an ounce in New York on May 2 amid a broad sell-off in commodities. Crude oil has since gained more than $4 and traded above $116 today, while copper and aluminum jumped on May 2 by more than 2 percent. ``The gold price crawled higher, supported by the lift in oil prices and firmer tone of base metals prices'' David Moore, commodity strategist at Commonwealth Bank of Australia in Sydney, said in a report today. Bullion for immediate delivery gained as much as $7.99, or 0.9 percent, to $864.45 an ounce and traded at $863.71 at 1:45 p.m. in Singapore. Silver was up 1.6 percent at $16.665 an ounce. ``Drivers of the recent rally in the gold price to $1,000 an ounce are still bubbling away,'' analysts at Macquarie Bank Ltd. in London led by Adam Rowley said in a report today. ``Concerns over global inflation will continue to be underpinned by strong raw materials prices'' while ``concern about U.S. Federal Reserve's clear bias towards its growth objective is likely to be another bullish factor,'' the Macquarie report said.
Finotec Analysis Team
05 May 2008
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