GOLD: 'Clinton effect' helps lift gold price
By Kenneth Gooding and Paul Solman
Gold was caught up in the uncertainties created by the threat that US President Bill Clinton might be impeached.
As the dollar weakened and US share prices fell, gold was "fixed" in London on Thursday afternoon at $290.50 a troy ounce, up by $7.05, or 2.5 per cent. It held on to its gains in New York trading.
Much of the increase came from funds covering short positions, dealers said.
Andy Smith, analyst at the Mitsui trading group, pointed out that, apart from the "Clinton effect", there were uncertainties caused by Russia's economic collapse and turmoil in Asia. "If gold couldn't rise when all this is going on, when would it go up?", he asked.
Dealers suggested gold might go higher in the short term before selling by Australian and South African producers capped the move.
Oil prices rose after figures from the American Petroleum Institute showed US crude stocks had dropped 6.68m barrels to 329.9m barrels in the week ended September 4.
Traders said the price was also helped by news that the UN had suspended its review of sanctions against Iraq. The review might have led to increased oil exports under the oil for food programme.
In late trading on London's International Petroleum Exchange, the benchmark October contract Brent crude was $13.34 a barrel, compared with Wednesday's close of $12.76.
White sugar futures dropped to $215.50 a tonne in late trading on the London International Financial Futures Exchange compared with Wednesday's close of $220.40.
Financial Times |
