LONDON (SHARECAST) - Gold edged closer to breaching $1,000 an ounce again as the weak dollar and worries about inflation helped demand.
The precious metal is suffering from worries that more effort must be made by the US government to help its economy. It could result in more money being printed and that will increase inflation.
Gold for August delivery rose $16.70 to settle at $982.30 an ounce.
Oil prices surged ahead, having at one stage targeted $70 a barrel, as a drop in jobless claims boosted expectations that the economy may be recovering, which will increase demand for oil.
Investment bank Goldman Sachs said an economic rebound and production cuts by OPEC could push oil towards $85 a barrel by the end of the year and to $95 by the end of 2010.
Crude for July delivery rose $2.69 to settle at $68.81 a barrel Thursday. It had hit $69.60 at one stage.
