Metals - Gold higher as fears over economy spark safe haven buying

LONDON (Thomson Financial) - Fears over the world's economy sparked safe haven buying in gold, while falling equity markets prompted a rush of investment into less risky assets such as bullion. Elsewhere, the dollar failed to claw back any of last night's losses as investors fretted about the U.S. financial sector. Gold moves in the opposite direction to the U.S. currency as it is seen as an alternative asset. The dollar fell Monday night after oil prices rebounded and American Express posted disappointing earnings, weighing on equity markets despite better than expected results from Bank of America. Earnings reports published so far by the major U.S. banks have mainly surprised on the upside, but analysts said investors remain wary that several major institutions are set to report major losses. 'There's an expectation that... [read full story]