GoldPrice Gains Slightly as Doha Oil Talks End in No Deal
London (Apr 18) Gold prices hit a two-day high in London Monday, on the back of market risk aversion in the aftermath of the failed oil talks in Doha.
Spot gold was up 0.4% at $1,238.88 a troy ounce in morning European trade, having earlier exchanged hands at an intraday high of $1,240.09 an ounce.
A meeting between key oil producing countries in Qatar on Sunday ended without a deal to freeze production in the oversupplied market, which unsettled some investors. Gold is widely considered a safe-haven asset, so it attracts buying during times of heightened risk.
“Gold is slightly firmer…, profiting from the increased risk aversion among market participants in the wake of the failed meeting of oil producers in Doha,” said Commerzbank AG in a research note.
The weaker greenback also contributed to gold’s gains by making the dollar-denominated metal cheaper to buy for those holding other currencies. The WSJ Dollar Index was recently down 0.07% at 86.19.