Bullion shines again

SINGAPORE: Gold rebounded from its weakest level in three weeks yesterday as the US dollar took a break after a rally, spurring demand from bargain hunters and lifting other precious metals.

Bullion has gained in the past two months to hit a record around $1,070 an ounce on Oct 14 as declines in the US dollar raised the metal's safe-haven appeal. Gold is seen as a hedge against both inflation and a depreciating dollar.

Cash gold added $4.85 an ounce to $1,041.95 by 0618 GMT, having hit an intraday low of $1,036, its lowest level since Oct 6.