iran seeks euro-denominated oil market, page-5

gold futures in ny shoot past us$680 Gold futures in NY shoot past US$680

MELBOURNE (6 May): Gold in New York reached a 25-year high, rising past US$680 an ounce, as investors bought the precious metal as a haven and a hedge against inflation.

Iran, the world's fourth largest oil supplier, yesterday rejected US-led demands that it halt uranium enrichment. Crude prices have surged to a record on concerns over disruption to Iranian oil supplies, raising fears of inflation and increasing the appeal of bullion as a hedge.

“It's the same story of Iran, inflation concerns and rising oil prices,'' Charles Dowsett, head of trading of precious metals at ABN Amro Holding NV, said by phone in Sydney.

Gold futures for June delivery rose as much as US$6, or 0.9%, to US$682.50 an ounce on the Comex division of the New York Mercantile Exchange in after-hours electronic trading –the highest since gold futures touched US$688.50 on Oct 16, 1980. They traded at US$679.10 at 3:18pm Sydney time.

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