Gold May Fall as Slowdown in Europe Curbs Investor Demand
Gold futures rose as the dollar pared gains, boosting demand for the precious metal as an alternative asset.
The greenback was little changed against a basket of major currencies after climbing as much as 0.4 percent. Christine Lagarde, the managing director of the International Monetary Fund, said at a press briefing in Washington that she expects the resources of the IMF to be “significantly increased” amid Europe’s sovereign-debt crisis.
“This is supportive news for gold, as we’re seeing the euro strengthen now,” Frank Lesh, a trader at FuturePath Trading in Chicago, said in a telephone interview. “This means more free money, and gold likes that.”
Gold futures for June delivery rose 0.1 percent to settle at $1,641.40 an ounce at 1:50 p.m. on the Comex in New York. Earlier, the price dropped as much as 0.5 percent.
Silver futures for May delivery gained 0.9 percent to $31.779 an ounce on the Comex.
On the New York Mercantile Exchange, platinum futures for July delivery slid 0.1 percent to $1,578 an ounce, and palladium futures for June delivery rose 0.9 percent to $663.30 an ounce.
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