Gold futures rose for the second straight day as the dollar’s decline spurred demand for the metal as an alternative asset.
The euro climbed as much as 0.7 percent against the greenback after German business confidence unexpectedly rose to a nine-month high.
“Gold is moving in lockstep with the dollar,” Pratik Sharma, a fund manager at Boca Raton, Florida-based Atyant Capital Management Ltd., said in a telephone interview.
Gold futures for June delivery rose 0.1 percent to settle at $1,642.80 an ounce at 1:36 p.m. on the Comex in New York. The price, down 1 percent this week, has climbed 4.9 percent in 2012.
“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.”
Silver futures for July delivery fell 0.4 percent to $31.72 an ounce. The metal, up 1.1 percent this week, has gained 14 percent in 2012.
On the New York Mercantile Exchange, palladium futures for June delivery advanced 2.1 percent to $676.90 an ounce. This week, the price gained 4.6 percent, the most in three months.
Platinum futures for July delivery climbed 0.4 percent to $1,584.20 an ounce.
This year, platinum has advanced 13 percent, and palladium is up 3.2 percent.