Gold futures rebounded from a four-week low as the dollar’s decline boosted demand for the metal as an alternative investment. Silver also climbed.
The greenback fell as much 0.5 percent against a basket of major currencies on speculation that Spain may get a line of credit from Europe’s rescue fund, easing debt concerns in the region. Yesterday, gold and silver tumbled the most in three months, partly on speculation that China may refrain from expanding economic stimulus.
“The dollar trading lower, and talk about Spain set to ask for a bailout is helping set the positive tone,” Steve Scacalossi, a New York-based vice president at TD Securities Inc., said in an e-mail.
Gold futures for December delivery rose 0.5 percent to settle at $1,746.30 an ounce at 1:43 p.m. on the Comex in New York, the biggest advance for a most-active contract since Oct. 4.
Yesterday, the metal slumped 1.3 percent, the most since July 6, after touching $1,729.70, the lowest since Sept. 13.
“The gold market experienced momentum-based selling but appears to have found a base” around $1,735, Australia & New Zealand Banking Group Ltd. analysts led by Mark Pervan said in a report.
Silver futures for December delivery climbed 0.7 percent to $32.959 an ounce on the Comex. Yesterday, the metal fell 2.8 percent, the most since June 21.
This year, silver has gained 18 percent, and gold has climbed 11 percent.
On the New York Mercantile Exchange, platinum futures for January delivery rose 0.8 percent to $1,645.20 an ounce. Palladium futures for December delivery advanced 1 percent to $638.95 an ounce.