Safe-Haven Gold Rises On Oil Concerns
Frankfurt (Dec 9) Gold prices rose in Europe on Tuesday, with oil prices triggering some safe-haven buying.
Spot gold was trading at $1,204.65 a troy ounce, up 0.1%, in morning European trade.
"The rout in oil prices is now causing some wider concern and that is leading to some risk reduction" buying, said William Adams, an analyst at Fastmarkets.
However, just as follow-through selling on the back of oil-related weakness has been "limited on the downside, there seems little appetite to chase the market aggressively higher either," say UBS analysts
Going forward, analysts at Phillip Futures do not "expect gold to breach $1,200 for the rest of 2014."
The other precious metals were mostly higher. Silver was up 0.5% at $16.414 an ounce, platinum was down 0.02% at $1,231.60 an ounce, and palladium was up 0.1% at $800.25 an ounce.