Crude oil futures rose above $75 a barrel in early New York trading Wednesday, nearly near one-year highs. on strength in European equities and new lows for the dollar.
Analysts said the increase was based on strength in U.S. and European equities and new lows for the dollar.
Gold gained in New York and London as the dollar traded near a 10-month low, increasing demand for the precious metal as an alternative investment.
“If gold does break through $960 an ounce, the next resistance will be $981,” brokerage firm GoldCore Ltd. in Dublin said today in a note. “Failing that, we will revert to the current range of $905 to $960 an ounce.”
Gold rose in New York and London after two straight declines as rising equity markets signaled increased willingness to take on risk, weighing on the dollar.
Gains in equities are a sign of “falling risk aversion,” which may reduce demand for the dollar, pushing gold higher, said Carsten Fritsch, a Commerzbank AG analyst in Frankfurt.
U.S. crude rose 33 cents to settle at $68.38 a barrel after earlier hitting $68.99, the highest since July 2. The gains came as gasoline and heating oil futures rose for the 10th session in a row.
Expectations that a rebound in the global economy could lift flagging oil demand has helped push crude prices up from below $33 a barrel in December.