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Business - Gold up 2% as oil surges



London — Gold gained around two per cent in thin post-Christmas
trading on Friday, as crude oil prices edged higher and the dollar
remained flat against a basket of major currencies.
Spot gold gained as much as 2.1 per cent to a session high of
$1,199.00 an ounce in early trade and was up 1.8 per cent at $1,194.21
at 14.25 GMT, well above a three-week low of $1,170.17 hit on Monday.
US gold futures for delivery in February also rose 1.8 per cent to $1,194.80 an ounce.
Higher crude prices, as unrest in Libya cut supplies, lent support to
gold on Friday. The metal, which is usually seen as a hedge against
oil-fuelled inflation, has renewed its relationship with oil lately,
mostly suffering from the 5-1/2-year lows hit by crude prices in
previous weeks.
Gold was also supported by a flat dollar, which however remained within reach of a near nine-year peak hit earlier this week.
Liquidity remained thin during the Christmas break as key markets
such as Australia, Hong Kong, Singapore and the UK were closed on
Friday, although New York will be open.
Investor sentiment towards gold is unlikely to improve in the first
few months of 2015, as markets expect the US economy to show continued
signs of strength.
Business - Gold up 2% as oil surges