Gold hits 4-week high

Thursday, September 03, 2009

LONDON: Gold hit a four-week high of $966.20 an ounce as concerns over falling equities pushed the metal through technical resistance levels in the wake of US jobs data, and amid weakness in the dollar index. Spot gold was bid at $964.90 an ounce at 1257 GMT, against $955.85 an ounce late in New York on Tuesday. US gold futures for December delivery on the COMEX division of the New York Mercantile Exchange rose $10.20 to $966.70. Equities were already weak yesterday, with rumours about further problems in the banking sector around. That definitely spurred some safe haven buying in gold, said Alexander Zumpfe, a trader at precious metals house Heraeus. After $960 broke, technical buying came in, he said. The dollar index, which measures the US unit s performance against a basket of major currencies, weakened after data showed US private employers cut 298,000 jobs in August, fewer than a revised 360,000 jobs in July. The stronger than expected jobs number failed to ease investor concerns about broader market sentiment. Oil prices fell, extending Tuesday s hefty 3 per cent slide to slip below $68 a barrel. Gold prices often track moves in oil, as the metal can be bought as an inflation hedge.

Visit Finance.KalPoint.Com for latest financial stories...