Gold may gain for a second day in New York as a weaker dollar spurs demand for the metal as an alternative asset and as commodities rise.
The euro climbed against the dollar amid speculation Group of 20 officials meeting with the International Monetary Fund today will step up efforts to quell Europe’s debt crisis. Other commodities advanced as a report showed German business confidence unexpectedly increased for a sixth month in April.
“The dollar is a bit weaker,” Peter Fertig, owner of Quantitative Commodity Research Ltd. in Hainburg, Germany, said today by phone. “This is giving some support,” as are higher raw-materials prices, he said.
Gold for June delivery gained 0.2 percent to $1,645.50 an ounce by 8 a.m. on the Comex in New York. Prices are down 0.9 percent this week. Bullion for immediate delivery rose 0.1 percent to $1,644.43 in London.
Holdings in bullion-backed exchange-traded products were little changed yesterday at 2,394.1 metric tons, about 0.7 percent below the March 13 record, data compiled by Bloomberg show. Prices are up 5 percent in 2012 after advancing for 11 consecutive years.
“There isn’t much investor and physical interest at the moment,” said Xiang Nan, an analyst at CITICS Futures Co., a unit of China’s biggest listed brokerage. “A lot of money is sidelined as we get mixed messages from data, and gold just gets pushed or pulled by what’s happening to other asset classes.”
Bank of Japan (8301) Governor Masaaki Shirakawa said in a speech in Washington the nation still needs monetary stimulus. Deputy Governor Kiyohiko Nishimura said two days ago the central bank is ready to implement additional easing if necessary to shore up the economy.
Silver for July delivery was little changed at $31.84 an ounce. Palladium for June delivery gained 0.3 percent to $665.10 an ounce and is up 2.8 percent this week. Platinum for July delivery was 0.3 percent higher at $1,583.50 an ounce.
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