Gold Holds Above $880


Gold held gains above $880 an ounce in Asia after a jump in crude oil and a decline in the dollar boosted the appeal of the precious metal as hedge against inflation and alternative investment.

Crude oil futures in New York advanced $5.07 to $136.38 a barrel yesterday on a U.S. report that showed inventories fell for a fourth week, spurring concern stockpiles may be strained during the summer driving season. The dollar traded at $1.5536 against the euro at 8:54 a.m. in Singapore, little changed from late yesterday in New York when it dropped 0.6 percent.

Bullion for immediate delivery was unchanged at $880.35 an ounce at 8:56 a.m. in Singapore, after gaining 1.5 percent yesterday. Silver was little changed at $16.835 an ounce at the same time.

The dollar may resume its advance against the euro before a government report forecast to show U.S. retail sales rebounded in May, easing concern the world's largest economy is heading into recession.

Gold for August delivery was little changed at $882.70 an ounce in after-hours electronic trading on Comex at 8:58 a.m. Singapore time.

Gold for April 2009 delivery gained 7 yen, or 0.2 percent, to 3,053 yen a gram ($888 an ounce) on the Tokyo Commodity Exchange at 9:59 a.m. local time.


TradingEconomics.com, Bloomberg
6/11/2008 8:44:00 PM