Gold Soars To Multi-Month High

(RTTNews) - The price of gold surged again on Friday and hit a 3 1/2-month high. Gold for August delivery moved to $961.10, up $19.10 on the session. Prices hit as high as $963.30 in the early going, pushed by record crude oil prices.

The dollar extended this week's losses versus the euro Friday morning, but was stable against most other majors. Renewed concerns about the health of the US financial sectors have weighed on the dollar for the past few sessions. Gold usually moves opposite the dollar because of its hedge attraction.

Gold closed higher for the second straight day as it continued to rebound from a slump from earlier this month. August gold moved to $942, up $13.40 on the day. Prices touched as high as $946.00 in the early-going.

Prices turned higher on Wednesday after a three-day dive. August gold closed at $928.60, up $5.30 for the session. The precious metal closed lower by $5.50 on the session. The metal touched as low as $913.00, its lowest mark since June 26. The metal recouped some of its losses but still lower by $4.80 on Monday as traders returned to work after a three-day holiday weekend.

The dollar has seen mild weakness over the last two days and returned some of its gains against other major currencies, which help boost the price of gold. The greenback had seen strength recently, reducing gold's hedge appeal.

Traders considered Labor Department data showing import prices in the U.S. climbed 2.6 percent in the month of June. This is higher than the expectations of analysts, who were looking for a rise of about 2 percent. Meanwhile, the Commerce Department reported that the U.S. trade deficit dropped to a seasonally-adjusted $59.8 billion.

Oil soared on Thursday amid turmoil in the Middle East and moved above $141 a barrel again. Light sweet crude for August delivery ended the session at $141.65, up $5.60 on the session. Prices climbed as high as $142.08 and erased most of its sharp drop from earlier in the week.

On Thursday, Iran test-fired more missiles, a day after testing Shahab-3, a long- range missile capable of reaching Israel. Iran has said it will close the Strait of Hormuz, which is vital to crude oil distribution, if its nuclear facility is attacked. Meanwhile, a militant group in Nigeria has threatened to end a ceasefire.

Traders also considered data from Wednesday showing inventories dropped more than expected in the recent week. Inventories decreased by 5.9 million barrels in the week ended July 4, according to the latest EIA report. However, gasoline and distillate stockpiles increased in the recent week.

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