BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
 You are in: Business  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
E-Commerce
Economy
Market Data
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
Monday, 17 February, 2003, 16:16 GMT
Gold falls as war tensions ease
gold bars
Investors tend to regard gold as a safe haven
The price of gold has fallen to its lowest level in almost seven weeks following signs that momentum towards a military conflict with Iraq may be slowing.

The gold market is saying that war is not a certainty

Paul Lee, director of precious metals at Dresdner Kleinwort Wasserstein
Gold, often seen as a safe-haven in times of international tension, fell as low as $342 an ounce on Monday, down from Friday's price of $350.50, before rising back to $347 by the day's end.

The US dollar, meanwhile, climbed against major currencies as war fears eased.

A weekend of massive anti-war demonstrations around the world and a divided international diplomatic community appears to have reduced tension.

"The case for war is getting weaker and weaker," said Teng Ngiek Lian, chief executive at Singapore's Target Asset Management.

Chief UN arms inspector Hans Blix was more conciliatory than usual last Friday in his report on weapons inspections in Iraq, leaving the UN Security Council divided over the need for war.

Gold slump

At 1600 GMT, after climbing to a session high of 1.0777 against the euro, the dollar was still almost one cent up, at 1.0734 euros.

"The gold market is saying that war is not a certainty," said Paul Lee, director of precious metals at Dresdner Kleinwort Wasserstein in Sydney.

Gold had seen a steady climb as tensions over a war in the Gulf made investors jittery.

Gold peaked at $388.50 earlier in February, its highest level in more than six years.

The financial markets in the US are closed on Monday, including trade of benchmark crude oil, to mark the Presidents' Day holiday.

See also:

13 Feb 03 | Business
11 Feb 03 | Business
11 Feb 03 | Business
07 Feb 03 | Business
31 Jan 03 | Business
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


 E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes