Gold rose to the highest since 1980 in London as the dollar weakened against currencies including the euro, increasing demand for bullion as an alternative asset. |
The dollar has fallen against all but two of the 16 most- active currencies this quarter, partly on concern the biggest housing slump in 16 years is weakening the US economy. The US cut interest rates for the first time in four years this month. Bullion is headed for the biggest quarterly gain since 1999. |
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"The dollar at a record low and the Fed rate cut have helped support gold prices," Suki Cooper, an analyst at Barclays Capital in London, said on Friday. |
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Gold for immediate delivery gained as much as $5.47, or 0.7 per cent, to $739.90 an ounce, the highest since January 1980. Bullion traded at $738.11 as of 10:12 a.m. in London. It's headed for a quarterly gain of 13.6 per cent, the biggest increase since the third quarter of 1999. |
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Meanwhile, standard gold jumped Rs 90 in the Mumbai bullion market to end the day at Rs 9,510 per 10 grams, while pure gold gained Rs 85 to Rs 9,555 per 10 gram. |
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A weakening of the rupee against the dollar firmed up the yellow metal prices in the domestic market. Buyer, meanwhile, kept off the market on the back of Shraddh Paksha, the ongoing inauspicious fortnight. |
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Oil slides below $83 Crude oil declined as the threat to US production from tropical storms diminished with the end of the busiest month in the Atlantic hurricane season. |
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Hurricane Lorenzo weakened to a tropical storm as it crossed over Mexico, the third-biggest supplier of crude to the US, according to the US National Hurricane Center. |
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September is the most active period in the June-November hurricane season, accounting for about a third of storms reported annually. |
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Crude oil for November delivery was at $82.56 a barrel, down 32 cents, in after-hours electronic trading on the New York Mercantile Exchange at 12:23 p.m. in London. In London, Brent crude for November settlement was at $79.87 a barrel. |
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