Gold prices begin to move in step with oil
By Kevin Morrison
Gold prices hit a near-18-year high in mid week on mounting
concern about the inflationary outlook, but then slid from
their peak. The yellow metal peaked at $480.25 a troy ounce on
Wednesday, its highest levels since January 1988, but ended the
week at about $466.
Paul Merrick, vice-president for commodities and foreign
exchange at Royal Bank of Canada, said gold prices appeared to
have broken their long-term relationship with the dollar and
were moving more in step with oil prices.
He said oil prices were seen as a good indicator of inflation.
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