Tuesday, April 1, 2008

Gold remains lower pressured by firmer dollar, ahead of U.S. ISM

Gold continued to come under pressure from a firmer U.S. dollar on fears of a global slowdown, and ahead of Tuesday's release of the United States' ISM manufacturing index.

The U.S. currency has bounced up against the euro on fears that the economic troubles in the world's largest economy have spread into the wider global economy, raising concerns that demand for commodities will be weakened.

'The rebound in the U.S. dollar has significantly destabilised the metals complex,' said Michael Jansen, analyst at JP Morgan.

At 1.02 p.m., spot gold was trading at $897.30 an ounce against the $917.00 in late New York trades yesterday, having touched an intraday low of $888.10 earlier this morning.

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