Gold hits 7-week high as equities fall
Monday 16th August 2010
Gold rose to its strongest in more than a month today as pessimism about the global economic recovery sparked buying from investors.
Holdings in the world's largest bullion-backed ETF, SPDR Gold Trust, were unchanged, suggesting that some investors were happy to hold on to bullion after recent U.S. economic data pointed to weakness in the economy.
Spot gold added $5.60 to $1,220.10 an ounce by 06:34 GMT, having hit an intraday day high of $1,220.60 - its highest since July 2. Bullion struck a record $1,264 in June.
Despite the current uptrend in the gold market, analysts say some investors might have factored in the bad news from the United States and may start looking for fresh impetus to help bullion challenge a July high of around $1,222.
The euro edged up 0.3 percent against the dollar to $1.2795, having pared its losses after dipping to $1.2734 on trading platform EBS earlier on Monday, its lowest against the dollar in almost a month.
Oil prices edged higher toward $76 on Monday, boosted by a weaker dollar, while a fall in Asian stock markets on news of a slowdown in Japan's economic growth restricted gains.
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