Futures and Commodity Market News

Sat May 17, 2008

Breaking financial news 24/7 courtesy of TradingCharts.com Inc. / TFC Commodity Charts

London, May 07, 2008 (Asia Pulse Data Source via COMTEX) -- Gold's investment appeal dimmed in in London today with its futures prices plunging to 866.60 an ounce as dollar gained against euro and crude prices surged.

The precious metal fell for the first time in four sessions here as the dollar rebounded against the euro while crude oil set a record peak level of 122.31 dollar a barrel in the US markets.

The gold for June delivery plunged 11.10 dollar to 866.60 dollar an ounce. Silver futures for July delivery also declined to 16.585 dollar an ounce.

The dollar rose on speculation that US central bank Federal Reserve may raise interest rates to curb inflation. Meanwhile, crude oil reached a record 122.31 dollar a barrel in New York Exchange yesterday.

Marketmen said trading sentiment turned bearish on reports that Switzerland's central bank might have increased gold sales by 33 per cent in April to 13 metric tons compared to the previous month's sale.

However, gold posted gains in Asia by 5.03 dollar to 881.43 dollar which was reflected India, a major market for the metal, where strong buying demand was witnessed on account of 'Akshya Tritya, an auspicious day in Hindu mythology for purchasing gold.

The metal gained the most in Delhi spot market where it shot up by Rs 150 at Rs 11,820 per 10 gram.

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