oil prices

Bullion prices soared on Friday above $940, setting an one-week high as stronger oil prices upheld gold demand as a potential hedge against oil-led inflation.

Gold has grown by about 1% this week after touching a 6-week low on Tuesday, that was a consolidation level as traders stated. Spot gold moved to a high of $942.60 per ounce, up 0.4% from New York's notional Thursday close of $938.55, and its highest since June 18 level. Thus, at about 5:50 GMT bullion was trading at $941.40.

On Tuesday gold prices declined to a six-week low following the dollar’s strength sapping demand as investors awaited the Federal Reserve's two-day policy meeting starting later in the day and its economic outlook.

The dollar was stronger against the euro and most other major currencies except the yen after a broad sell-off in U.S.

In early Monday deals, the US currency jumped to a 12-day high versus euro, sterling and franc as concerns about the global economy prompted investors to seek the safety of the world's most liquid currency. The already weaker economic fundamentals and further strain on the global economy expectation are dampening the glimmer of hope generated by the U.S. initiatives for reviving the economy.