LONDON (SHARECAST) - Gold still continues to be favoured by investors as finance ministers at the G20 failed to give any clear direction with respect to the withdrawal of stimulus packages. In fact they stated that with concerns over unemployment and uneven growth the crutches of stimulus should continue to remain in place for the foreseeable future. As a result appetite for riskier assets away from the dollar has increased, and as result the dollar index looks set to re-test last months lows at 74.95, a break of which could target the March 2008 all-time lows at 70.70. This in turn has sent Gold above $1,100 and the yellow metal looks set to test $1,120 in the short term, with highs so far today of $1,109.50. Oil in the meantime continues to find bids on any dips below $77 while finding plenty of offers above $80. With futures contracts 12 months from now showing levels well above $81 the outlooks for oil remains for significantly higher levels over the next year.

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