Gold tracks oil lower, silver stays steady

March, 09th 2011

Singapore: Gold tracked oil lower and was under pressure from firmer equities, but bargain hunting from jewellers and worries that violence in Libya and the Middle East could spread may support prices that have dropped from a lifetime high.

Silver was steady below a 31-year high. Gains in ETF holdings indicated a growing interest in the metal, with the gold/silver ratio hovering below 40:1, the lowest since February 1998. Holdings in iShares Silver Trust, rose to 10,913.32 tonnes by March 8, their strongest since early January.

Spot gold shed $2.04 to $1,426.15 an ounce by 0706 GMT, off a record high of $1,444.40 an ounce struck on Monday, when investors poured money into bullion as violence flared in Libya and after the downgrade of Greece's credit rating reignited worries about Eurozone sovereign debt. "I feel it is consolidating, waiting for any lead out of Libya," said Jonathan Barratt, managing director of Commodity Broking Services in Melbourne.

Source: Gulfnews.com