2/08/2011 06:30:00 PM
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Gold Trend
Gold edges up, gains tempered by China
LONDON - Gold edged up for a second day on Tuesday, shrugging off a rise in China’s benchmark interest rates, while equities fell, the euro picked up and flows of metal out of exchange-traded funds stabilised. The gold price came under intense pressure last week after more signs emerged that global growth continues to improve and that the euro zone debt crisis has not worsened, which eroded some investor appetite for the metal.
Spot gold was up 0.2 percent at $1,352.80 an ounce by 1055 GMT, set for a second consecutive weekly rise but still 5 percent below record highs struck in mid-December.
Oil Review
Oil drops after China rate hike
LONDON - Oil prices fell on Tuesday after China moved to tame inflation with an interest rate increase, the second lift in just over six weeks.
US crude (WTI) for March fell by $1.13 to $86.35 a barrel by 1122 GMT. ICE Brent lost 95 cents to $98.30 a barrel. “I think it was a largely expected move, they are trying to put pressure on the economy in 2011 as they don’t want inflation to rise too much,” Credit Agricole CIB’s analyst Christophe Barret said. “Of course it will have an impact on oil demand.”
Stronger interest rates may act to tame oil demand growth in China, which according to the International Energy Agency recently overtook the United States as the largest energy consumer in the world.
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