Dhaka, Bangladesh (BBN) – Gold touched a two-week low on Friday on diminishing liquidity concerns before bouncing back, lifted by lingering concern about financial stability and strong physical buying interest from Asia.
Spot gold dropped significantly as traders moved to Greenback as safe haven amidst Europe woes, a weekly review report said.
Gold headed for its biggest daily gain in a week on Tuesday as Italy’s credit downgrade and concerns of more U.S. stimulus drove bullion as a safe-haven. Gold fell about 1 percent on Wednesday after the Federal Reserve indicated it was rebalancing its bonds portfolio in favor of longer-dated debt
On the other hand, Brent crude fell on Friday, reversing earlier gains, as the EUR weakened and the consumer outlook fell to a 31-year low. U.S. crude settled down USD 1.44 a barrel to trade below USD 88.00.
Oil tumbled in a second day of heavy losses on Monday, with Brent crude reaching its lowest price in almost a month as escalating fears over the euro zone debt crisis triggered across-the-board selling of riskier assets.
Oil rose on Tuesday after steep losses in the previous session, as financial markets got a lift from hopes the U.S. Federal Reserve’s policy panel could act to boost the economy. Oil prices ended lower on Wednesday after the Federal Reserve said the economic outlook remained grim, which overshadowed an unexpectedly steep drop in crude supplies in the world’s top oil consumer.
BBN/SSR/AD-24Sept11-5:03 pm (BST)