Gold futures rebounded from an 11-week low as the dollar’s decline boosted the appeal of the precious metal as an alternative investment.
The greenback fell as much as 0.9 percent against a basket of 10 counterparts after a French official said President Barack Obama told delegates at a summit of the Group of Seven that the strong dollar posed a problem. Obama said he didn’t express concerns that the currency’s strength was an issue. Platinum futures also climbed.
On June 5, gold touched the lowest since March 19 after the U.S. in May added more jobs than forecast by analysts, boosting speculation that the Federal Reserve will raise interest rates this year. Higher rates drive investors to favor assets that pay interest, curbing the allure of the metal.
“The dollar is weaker, and that’s certainly helping precious metals, especially gold and platinum,” James Cordier, the founder of Optionsellers.com in Tampa, Florida, said in a telephone interview. “You don’t get headlines like what the president may have said very often, but we have them today.”
Gold futures for August delivery climbed 0.5 percent to settle at $1,173.60 an ounce at 1:39 p.m. on the Comex in New York. On June 5, the price touched $1,162.10.
Platinum futures for July delivery rose 0.8 percent to $1,101.20 an ounce on the New York Mercantile Exchange. Aggregate trading was 25 percent above the 100-day average, according to data compiled by Bloomberg.
Palladium futures for September delivery declined 1 percent to $743.75 an ounce on the Nymex. The price dropped for the seventh straight session, the longest slump since Feb. 4, 2014.
Silver futures for July delivery fell 0.2 percent to $15.959 an ounce on the Comex. The metal dropped for the fourth straight session, the longest slump since March 11.