Gold Slides on Crude Slump

Investors abandoned gold as a safe haven amid a pause in oil's relentless hike this week.
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Gold prices slid Thursday as the cost of buying a barrel crude oil retreated from its all-time high.

Benchmark bullion futures slipped $10.30 to settle at $918.30 an ounce on the Comex division of the New York Mercantile Exchange.

Rising oil prices are seen as a key driver in pushing inflation higher, which tends to inspire some investors to seek out gold as a hedge against a generally rising price level. So when oil prices retreat it is not uncommon to see the price of gold do so also.

The

SPDR Gold Trust

(GLD) - Get Report

, which holds bars of pure bullion, fell 1.1%, in line with the spot market action.

In the precious metals patch,

Kinross Gold

(KGC) - Get Report

was declined 2.4%, while those of

Barrick Gold

(ABX)

were off about 0.3%, both pulled lower by the falling metal price.

In the foreign-exchange market, one euro was buying $1.5702 vs. $1.5697 on Wednesday. One dollar was trading for 104.2 Japanese yen down from 104.3 yen previously. The British pound was selling for $1.978 vs. $1.9778.

The

CurrencyShares Euro Trust

(FXE) - Get Report

and the

CurrencyShares Japanese Yen Trust

(FXY) - Get Report

were falling 0.6% and 1.2% respectively. The

CurrencyShares British Pound Sterling

(FXB) - Get Report

was up 0.5%.