Gold Trades Near Three-Week High


Gold was little changed near a three- week high in Asia as a rise in crude oil and a weakening U.S. dollar boosted the appeal of bullion as a hedge against accelerating consumer prices.

Oil for March delivery traded at $99.35 a barrel in after- hours trading on the New York Mercantile Exchange at 9:29 a.m. in Singapore, after reaching a record $100.10 yesterday on speculation OPEC will decide to cut production next month.

Bullion for immediate delivery gained 70 cents to $928.50 an ounce as of 9:29 a.m. in Singapore, after earlier rising as much as 0.2 percent to $929.99. Silver for immediate delivery was little changed at $17.55 an ounce.

Gold rose to a record $936.92 an ounce Feb. 1 on concerns the dollar will slump further following speculation the U.S. central bank may lower borrowing costs to support the economy.

The precious metal also benefited as other commodities such as base metals and agricultural commodities rallied. The UBS Bloomberg Constant Maturity Commodity Index gained as much as 3.1 percent to a record 1,447.015 yesterday, as crude oil, platinum, soybeans and gasoline touched their highest prices ever.


TradingEconomics.com, Bloomberg
2/19/2008 7:02:48 PM