Gold News

Gold gleams as oil steams ahead

People looking to buy gold have flocked to the metal in increasing numbers as oil prices continued to rise.

Spot gold rose as far as $739 per ounce today (September 21st), the highest figure recorded since the beginning of 1980, with investment remaining strong enough to keep it near that level.

Gold sale was also rampant yesterday, with the metal trading between $734.20 and $735.00 late on at the New York Mercantile Exchange.

Both in 1980 and in the current surge, spiraling oil prices have spelt great news for gold investment, just as other sectors recoil in anticipation of the inflation threatened by higher fuel costs across the board.

Crude oil hovered around $82 a barrel today, not far off Thursday's record high of $84, after being buoyed by news of weather problems affecting Gulf of Mexico output.

Mexican complications could compound worries about limited stockpiles fetching even higher prices for the fuel as Northern Hemisphere winter demand grows, although some hope that the US economic slowdown will keep petrol demand down.

Others however, including many gold bullion traders, envisage a continued rise of fuel prices, after a US Energy Department report showed that American crude oil stockpiles fell last week by nearly twice the predicted amount.

An ensuing shortfall of oil supply could make its price soar, with the gold price likely to follow as shrewd investors hedge against inflation.

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