Gold strengthens as the dollar weakens and over inflation concerns

Gold rose to its highest in a week as the dollar dropped against the euro, buoying demand for the metal as an alternative investment. ``The major effect on gold is coming from the weakening dollar,'' Liran Kapeluto, a senior dealer at trading-system operator Finotec Trading U.K. Ltd., said by phone from London. ``It is pushing commodities up.'' Gold is currently trading at $821.05 as of 8:40am, GMT.

Oil rises on a weak dollar and Russian tensions

Oil rose to $117 a barrel in New York on concerns that Russian crude may be disrupted after the U.S. agreed to build a missile-defense system in Poland and the conflict in Georgia has halted supplies from the Caspian Sea. The missile shield has ``real anti-Russian potential'' and will ``spur an arms race'' in Europe, Russia's Foreign Ministry said in a statement. Russia's invasion of Georgia has disrupted the export of 1.1 million barrels of crude from the Caspian Sea. U.S. gasoline supplies fell 6.2 million barrels last week, more than double analysts' predictions. Crude currently trading at $116.175 as 8:36am, GMT.

Gold advances on uncertain outlook

Gold advanced for the second day in Asia after crude oil gained boosting the appeal of the precious metal as an inflation hedge. Gold also rose on expectations the dollar may fall against the euro for a second day, increasing the appeal of bullion as a haven. Oil rose as much as 0.9 percent today. ``Gold is often viewed as a hedge against inflation and exchange rate movements,'' Michael Widmer, an analyst at Lehman Brothers Holdings Inc., said in a report e-mailed today. ``Movements of oil prices are an important determinant of inflation.'' Gold currently trading at $930.70 as 8:42 am, GMT.

Crude oil hovering around $136

Crude oil traded near $136 a barrel after rising as traders judged a 6.3 percent decline this week as excessive and China's first-half imports gained, increasing concern that emerging-market demand will outpace supply. Oil posted its biggest two-day decline in more than three months after reaching a record $145.85 a barrel on July 3. Chinese imports through to June climbed 11 percent to 90.53 million metric tons, the Customs General Administration said on its Web site today. U.S. fuel demand, in terms of products supplied, fell by 270,000 barrels a day last week, the Energy Department said. Crude currently trading at $136.488 as of 8:36 am, GMT.

Gold dips as traders await Fed Decision

Gold slipped on Wednesday as investors booked profits from a recent price hike and waited for an interest rate decision by the U.S. Federal Reserve, which may set direction for the dollar and precious metals. Gold is currently trading at 891.10 an ounce from $888.70 an ounce late in New York on Tuesday, when it rose nearly $6 on a weaker dollar.The Fed is widely expected to hold interest rates steady at 2 percent later in the day. Investors will scrutinize the accompanying statement for clues on the central bank's thinking on mounting inflationary pressure. Gold jumped to its highest level in more than a week at $907.90 on rising oil prices on Thursday before retreating, and it is still well below a record high of $1,030.80 hit in mid-March.