Spot gold on Monday afternoon moved to a fresh 17-and-a-half-year high of $468,85 a troy ounce as stops were triggered in the metal and amid a lack of countervailing selling and talk of another potential hurricane developing off the United States coast, traders said.
Crude-oil futures topped $64 a barrel on Monday as concerns built that Tropical Storm Rita could turn into a hurricane and move into the already battered Gulf of Mexico, AFX reported.
Tropical Storm Rita is likely to become a major hurricane over the Gulf of Mexico, AFX later reported the US National Hurricane Centre as saying.
At 5.40pm, oil was quoted at $64,84 a barrel, up 4,9% or $3 a barrel from the commodity’s previous close.
Gold was quoted at $467,85/oz, up $9,15/oz from its previous close. The euro was last at $1,2154 from the unit’s previous close of $1,2160.
“Gold is up on stops being triggered and there just have been no sellers all day. The euro has been stable, and the main move in gold has been in euros, with gold moving to €385/oz,” a Switzerland-based trader said.
At 5.40pm, gold was quoted at €384,94/oz.
“The talk of another hurricane has boosted oil and, in turn, gold. The next key level for gold is $470/oz,” the trader added.
“The bulls have continued to drive gold and the other precious metals higher today,” United Kingdom-based TheBullionDesk.com analyst James Moore wrote.
“A jump in energy prices has been one of the helping factors in today’s movements as the latest tropical storm, Rita, heads towards the Gulf of Mexico oil refineries and platforms, which are still reeling from the devastation left by Hurricane Katrina,” he added.
“The dollar remains in a slightly firmer mood against the euro today as German politicians continue to decide the leadership of the largest European nation following the indecisive election result,” Moore added.
“With the market in its current state, further gains seem the most logical outlook with a test of $500/oz becoming increasing likely before year-end,” Moore stated. — I-Net Bridge