Gold Futures Rise on Investment Demand as Dollar Drops
Gold futures rose for the second straight day as the dollar’s decline spurred demand for the metal as an alternative investment.
The greenback fell to a four-week low against a basket of major currencies after Spain kept its investment grade credit rating from Moody’s Investors Service, easing European fiscal concerns. Yesterday, gold climbed 0.5 percent as the dollar fell 0.4 percent.
“The weaker dollar is lending support to gold,” Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said in a telephone interview.
Gold futures for December delivery climbed 0.4 percent to settle at $1,753 an ounce at 1:52 p.m. on the Comex in New York. The price has increased 12 percent this year.
Silver futures for December delivery rose 0.8 percent to $33.232 an ounce, extending this year’s gain to 19 percent.
On the New York Mercantile Exchange, platinum futures for January delivery advanced 1.5 percent to $1,670.50 an ounce. Palladium futures for December delivery surged 2.3 percent to $653.40 an ounce, the biggest jump for a most-active contract since Oct. 4.
To contact the reporters on this story: Debarati Roy in New York at droy5@bloomberg.net
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
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