Gold Hits Three-Month High Above $966
Source: Reuters (5/29/09)
"Gold seems to be getting support from oil. . ."
The precious metal has risen about 1% this week and has gained about $80, or 9%, this month, putting it on track for its biggest monthly rise in six months.
"Gold seems to be getting support from oil, as high oil prices can lead to fears of inflation," said David Moore, a commodities analyst at the Commonwealth Bank of Australia.
"Oil and gold might move together at times as both are seen in some way as real commodity investments."
Spot gold exceeded a March high and rose to $966.80 per ounce by 06:30 GMT, its highest level since late February and up 0.8% from the notional New York close of $958.80.
U.S. gold futures for August delivery rose 0.5% to $967.9 an ounce from $963.20 an ounce on the COMEX division of the New York Mercantile Exchange.
Investment into gold-backed exchange-traded funds has stalled for a fourth straight session, as holdings at the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, remained unchanged at 1 118.76 t as of May 28.