Friday May 9, 10:01 AM
Metals - Gold high on record oil, softer dollar
LONDON (Thomson Financial) - Gold rose as record high prices stoked inflation jitters and as the dollar weakened against the euro.
Gold moves in line with high oil prices as investors hedge against inflation and counter to the dollar as it is seen as an alternative asset.
'Some weakening in the U.S. dollar and increased investment interest have been pushing up prices,' said John Meyer, Fairfax analyst.
Oil rose to a series of records highs, hitting almost $125 at one point, as peak prices attracted a rush of fund investment. The dollar meanwhile, weakened against the euro which was up as markets continued to digest yesterday's European Central Bank interest rate decision and the lack of any signal that borrowing costs in the 15-nation currency zone will fall anytime soon.
At 9:40 a.m., spot gold was trading at $886.45 per ounce against $881.10 in late New York trade on Thursday.
Among other metals, silver rose to $16.94 an ounce from $16.81.
Elsewhere, platinum rose to $2,077 an ounce against $2,019, while palladium was trading at $439 against $433.
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