Gold News

Gold looks for support below $800

Gold traded lower today (November 30th) but looked to receive the solid support that has come to its aid below the $800 per ounce mark.

In the morning's New York trade, spot gold hovered at around $787 per ounce – down from $794.51 later yesterday – as the effect of a rapid drop in oil prices took its toll on enthusiasm to buy gold.

Meanwhile, gold futures for February delivery dropped $15.10, constituting about two per cent of its value, leading prices around $787.20 and adding to Thursday losses, but many experts predicted strong support buying to follow and drag the metal back up.

Analysts at Action Economics told MarketWatch: "There may be a further temporary correction [in gold prices], but the overall outlook for gold remains positive."

They predicted longer terms gains in its value as investors considered it "a hedge against oil-price-induced inflation, but also as a safe-haven investment as the outlook for world growth remains uncertain".

Denominated exclusively in dollars, gold prices often respond rapidly to the fate of the greenback, with the dollar today gaining against the yen and making the metal a less enticing investment opportunity for Japanese buyers.

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