Gold price rebounded Monday as the precious metal won support amid ongoing uncertainty stemming from the collapse of US investment bank Lehman Brothers, dealers said. On the London Bullion Market, the price of gold rose to 785.70 dollars per ounce, from 750.25 late on Friday. In contrast, crude oil prices slumped Monday as investors feared that slower economic growth would dampen future energy demand. Gold, which is used in jewelry, dentistry and electronics, is widely regarded as a safe store of value amid economic gloom. Meanwhile, the European Commission said on Monday it was confident that international banking bodies would be able to work effectively together in the face of a US-born financial crisis. “The Commission in general and (EU Economic Affairs) Commissioner (Joaquin) Almunia are closely following developments,” said Commission spokesman Johannes Laitenberger. He said the Commission was “confident of good coordination, as well as a solution, among central banks, regulators and the private sector.” The European Central Bank earlier Monday injected 30 billion euros (42.4 billion dollars) into eurzone financial markets to ease tension sparked by the collapse of US investment titan Lehman Brothers. Laitenberger declined to comment on specific institutions. “At this stage rather than commenting ... the focus should be on what is needed to be done,” he said. He said EU finance ministers meeting on the weekend in Nice, southern France, made it “very clear on what is now needed.”
