Gold Advances on Investor Demand for Alternative to Gyrating Currencies
Gold climbed for the third straight day on investor demand for an alternative to gyrating currencies.
The Bank of Japan (8301) has been pouring cash into the financial system to stabilize money markets following last week’s earthquake. The yen fell the most in more than two years against the dollar as the Group of Seven nations agreed to intervene jointly in the foreign-exchange market. The dollar headed for a weekly decline against a basket of six major currencies.
“People look at the moves in the currencies, and they want to buy gold as a safe haven,” said Frank Lesh, a trader at FuturePath Trading LLC in Chicago. “Gold is an international currency and a stable currency at the moment.”
Gold futures for April delivery rose $11.90, or 0.8 percent, to settle at $1,416.10 an ounce at 1:56 p.m. on the Comex in New York. The price, down 0.4 percent this week, has gained 26 percent in the past 12 months. The metal reached a record $1,445.70 on March 7.
Silver futures for May delivery gained 80 cents, or 2.3 percent, to $35.058 an ounce. The price, down 2.4 percent this week, has doubled in the past year.
Palladium futures for June delivery climbed $14.40, or 2 percent, to $731.20 an ounce on the New York Mercantile Exchange. The metal, down 4.5 percent this week, has advanced 53 percent in the past 12 months.
Platinum futures for April delivery advanced $16.50, or 1 percent, to $1,723.40 an ounce. The metal, down 3.3 percent this week, has climbed 5.7 percent in the past year.
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