Gold News

Gold buoyed by oil uprising

Gold rose above $800 an ounce thanks to a recovery in the price of oil today (Monday 10th), while a renewed weakness in the dollar helped prices.

However, the upside is widely thought to be limited ahead of tomorrow's anticipated rate cut by the US Federal Reserve, which is expected to be shedding 25 basis points in its FOMC decision tomorrow.

"It is hard to see markets moving much ahead of the FOMC decision on Tuesday evening but beyond that gold remains well within its recent $772 - $836 an ounce range," UBS Investment Bank analyst John Reade told CNN Money.

Earlier in the week many observers were expecting a 50 basis point cut, although better-than-expected payrolls on Friday put paid to that, instead heading for a 25 point cut.

Nevertheless, spot gold rose to $808.60 per ounce this afternoon, up from $784.40 in late New York trading on Friday.

However, the year end is likely to see more selling pressure on gold, as traders begin to look to profits in the New Year.


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