Gold News

Strong oil 'could support gold prices'

Gold prices could be poised to rally in coming months as predictions for the price of oil shoot up.

The two are intrinsically linked, since a price rise in crude oil leads to higher inflation, which in turn often leads investors to buy gold as a safe haven for their assets and an alternative to volatile currencies.

Gold prices have gained 26 per cent in 2008 alone, reaching an all-time high of $1,000 an ounce in March.

We've seen projections for $150 crude, so that's adding to inflation fears and helping gold. Gold is still hanging in positive territory," said Carlos Sanchez, an analyst with New York's CPM Group, according to the Associated Press.

Investors who may be interested in buying gold are now anticipating the release of data detailing April housing starts and consumer sentiment in the US state of Michigan, which is expected to be weak, thereby further supporting gold.

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