Business World

Sunday 25 September 2016

Gold prices steady after 'flash crash' on markets

Published 21/07/2015 | 12:42

Gold profits are falling.
Gold profits are falling.

London's FTSE 100 Index clawed back early session losses as gold prices steadied after hitting five year lows in Monday's "flash crash".

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Miners that were hit in the gold sell-off bounced back as the price of the precious metal regained some of the ground lost in yesterday's rout, when it plunged to below 1,100 US dollars an ounce for the first time since March 2010.

Strong gains from gold specialist Randgold Resources and silver miner Fresnillo helped the FTSE 100 Index edge 7.1 points higher to 6795.7, having earlier fallen into negative territory.

Gold prices were driven lower in the previous session by speculation over a US rate hike and unusually aggressive selling, but rallied today to stand at 1,107.71 US dollars (£713) an ounce.

Fresnillo, which fell heavily on Monday, rose 3% or 21.5p to 650.5p, while Randgold Resources lifted 77p to 3894p.

But oil majors were hit as the price of crude remained under pressure amid concerns over a global oil glut and stronger US dollar.

BP dropped 4.1p to 412.6p and Royal Dutch Shell fell 1.5p to 1836.5p.

 

Press Association

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