Gold was steady near $870 as high oil prices continued to stoke inflation...
Gold was steady near $870 as high oil prices continued to stoke inflation jitters and as the dollar's recent rally stalled.
The precious metal moves in line with oil prices as investors hedge against inflation and in the opposite direction to the greenback as it is seen as an alternative asset.
At 9:43 a.m., spot gold was trading at $873.75 per ounce against $868.60 in late New York trade on Tuesday.
From a short term perspective gold is neutrally positioned in the middle of its recent range, said John Reade, analyst at UBS 'The metal is searching for fresh direction with crude and EUR/USD off their recent highs, but still present talk of inflation and risk aversion rising again supporting the metal. We hold our forecasts of $900/oz in one month and $850/oz in three months.'