Gold edged closer to the $1,000 an ounce mark on Monday, setting a record high for the fourth straight day after the dollar tumbled and crude oil held near an all-time high.
Gold has gained more than 17% in 2008 as investors shift some of their money into the precious metal on expectations of more interest rate cuts in the United States, volatile stock markets and fears of rising energy costs.
Gold jumped as high as $980.75 an ounce, partly driven by purchases from Japanese speculators who took advantage of the dollar’s drop to a three-year low against the yen. Gold was last quoted at $973.30/973.75 in New York on Friday.
Oil trading near $102
Oil prices were steady on Monday, finding support from a sharp decline in the U.S. dollar and expectations oil cartel OPEC would leave its output unchanged.
U.S. light crude for April delivery rose 10 cents to $101.94 a barrel by 0029 GMT. London Brent crude was steady at $100.10.
Asian stocks fell as the dollar plumbs near new depths
The dollar fell to a record low against a basket of currencies on Monday, dragging Asian stock markets down and compounding worries about a likely U.S. recession and more writedowns in the global financial sector.
A sliding dollar boosted safe-haven bonds and sent gold to a record high in Asia. The dollar fell as low as 73.551 against a basket of six major currencies, taking it to the lowest since the index was started in 1973. It ploughed below 103 yen as a sell-off in Wall Street last Friday spurred an unwinding of carry trades.
The falling currency sent spot gold to a record high of $980.75 an ounce but hurt share prices, with Japan’s Nikkei average stock price index down 4% by 0147 GMT.
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