Gold rebounds as crude, equities tumble after oil talks fail

[SINGAPORE] Gold rallied as crude plunged, spurring a selloff in riskier assets from commodities to equities and boosting demand for a haven.

Bullion for immediate delivery climbed as much as 0.5 per cent to US$1,239.56 an ounce and traded at US$1,237.16 at 9:20 am in Singapore, according to Bloomberg generic pricing.

Prices rose 0.5 per cent on Friday, paring a weekly drop, after US reports showed manufacturing output unexpectedly declined and consumer confidence fell, reviving demand for gold.

The metal has risen 17 per cent this year amid financial- market tumult and concerns over the outlook for global economic growth at the start of the year.

Crude tumbled by the most in two months, while Asian equities slumped from a four-month high, after talks on Sunday between the world's oil biggest producers ended without any agreement on limiting supplies.

"The failure of the Doha meeting for a crude oil production freeze should lend support to gold prices in any risk-off rally," Australia & New Zealand Banking Group Ltd said in a note Monday.

BLOOMBERG