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.
Thursday, July 10, 2008
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.
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