Gold Trades Above $600 for Second Day After Gain in Oil Prices
By Tan Hwee Ann
Sept. 28 (Bloomberg) -- Gold traded for a second day above $600 an ounce after rising yesterday as a gain in crude oil prices increased the precious metal's appeal as a hedge against inflation.
Crude oil posted its biggest gain in six months yesterday, pushing gold above $600 for the first time since Sept. 11. The price of gold has gained 17 percent this year, partly because crude in New York climbed to a record in July.
``Gold is taking a pause now,'' said Jonathan Barratt, a founder of Commodity Broking Services, in Sydney. ``If we can get to $605 an ounce, we could continue the upward trend. People are reacting to crude oil prices.''
Gold for immediate delivery fell as much $1.86, or 0.3 percent, to $601.23 and traded at $601.50 at 4:10 p.m. Sydney time. It earlier rose 0.2 percent.
Gold for delivery in December rose as much as $6.30, or 1 percent, to $609.60 an ounce in after-hours electronic trading on the Comex division of the New York Mercantile Exchange. It traded at $606.80 at 3:50 p.m. Sydney time.
The futures rallied for the sixth straight session yesterday, the longest streak since May, on speculation demand by investors and jewelers will buoy commodities in the fourth quarter.
``As we set ourselves to enter the fourth quarter, the market will watch closely the physical demand by jewelers, especially in India, and also the support received by gold as it hovers around the $600 mark,'' said Investec Bank (Australia) Ltd. in an e-mailed report.
To contact the reporter on this story: Tan Hwee Ann in Melbourne at [email protected]
