Gold Trades Near One-Week Low on Strengthening Dollar

Gold gained for the first time in four sessions as the dollar fell against the euro, increasing demand for the precious metal as an alternative investment.

Europe’s shared currency gained 0.1 percent, after earlier falling to $1.2835, the lowest since Oct. 1, amid increasing debt concerns. Gold rallied last quarter as central banks from the U.S. to Asia pledged to spur economic growth.

“The market was largely directionless today, and we saw some bids after the euro gained,” Frank Lesh, a trader at FuturePath Trading in Chicago, said in a telephone interview.

Gold futures for December delivery rose 10 cents to settle at $1,765.10 an ounce at 1:41 p.m. on the Comex in New York. Earlier, prices dropped to $1,758.50, the lowest for a most-active contract since Sept. 27.

Silver futures for December delivery rose 0.4 percent to $34.109 an ounce in New York.

Platinum futures for January delivery fell 1 percent to $1,678.50 an ounce on the New York Mercantile Exchange. Palladium futures for December delivery retreated 1.3 percent to $649.90 an ounce.