Gold Price Shows Strength as Oil Hits Record High

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"It's holding quite well near the highs, closely following crude oil and euro-dollar," said UBS analyst John Reade. "It certainly seems that with the oil prices very strong, the dollar fairly weak and obviously lots of risk aversion around that, gold can do quite well."

Gold climbed to $930.40 an ounce, its highest since May 27, and was at $927.20/928.20 by New York's last quote at 2:15 p.m. EDT, well above the $912.60/913.60 an ounce it was quoted late in New York on Thursday.

"It's holding quite well near the highs, closely following crude oil and euro-dollar," said UBS analyst John Reade. "It certainly seems that with the oil prices very strong, the dollar fairly weak and obviously lots of risk aversion around that, gold can do quite well."

The U.S. gold contract for August delivery on COMEX division of New York Mercantile Exchange settled up $16.20, or 1.8 percent, at $931.30 an ounce.

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