Wednesday, July 9, 2008
Gold futures make fractional gains Wednesday, as rising oil prices and a lower U.S. dollar tied to reports that Iran had test-fired a missile lent support for the precious metal.
Gold for August delivery gained $3.90 to stand at $927.20 an ounce on the New York Mercantile Exchange.
Earlier, the contract hit an intraday high of $930.
“Speculators hearing one tilt in Iranian rhetoric but seeing quite another in its actions decided that the safer play for the moment is either not to let go of a larger part of their positions in the two commodities or to perhaps buy a few additional units — just in case,” said Kitco Bullion Dealers senior analyst Jon Nadler, referring to traders’ appetite for gold and oil.
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Iran test-fired nine missiles earlier Wednesday, including a new version of the Shahab-3, which is capable of reaching its main regional enemy Israel, the BBC reported.
Iran and Israel have engaged in back-and-forth saber-rattling growing out of Tehran’s controversial plans for developing nuclear power.
While Iran has tested the Shahab-3 missile in the past, the latest launch comes as tensions have been escalating between Iran, the U.S. and Israel. The U.S. denounced the test and again urged Iran to abandon its missile program, the BBC said.
Oil futures were volatile Wednesday following the news from Iran as well as U.S. government data that showed bigger-than-expected reductions in U.S. crude inventories last week.
This article was posted: Wednesday, July 9, 2008 at 12:38 pm