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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.