Gold rose, halting a two-session slide, on speculation that a weaker dollar will spur demand for the metal as an alternative investment. Silver also gained.
The US Dollar Index, a six-currency gauge of the greenback’s value, fell from a two-week high on speculation that the global recession is ending, damping demand for the dollar as a refuge. Gold typically moves inversely to the currency.
"When we look at gold, we think that it’s going to be something that investors are going to increasingly want to have in their portfolios," Peter Arden, an Ord Minnett analyst, said today in a Bloomberg Television interview. "It’s an insurance policy. It’s all about giving greater certainty that financial assets are going to have some value."
Gold futures for August delivery climbed $US2.20, or 0.2 per cent, to $US954.70 an ounce on the New York Mercantile Exchange’s Comex division. Gold for immediate delivery rose $US2.12, or 0.2 per cent, to $US953.93 in London.
Silver futures for July delivery gained 18.5 US cents, or 1.2 per cent, to $US15.14 an ounce on the Comex. Silver for immediate delivery in London added 22.5 US cents, or 1.5 per cent, to $US15.175 an ounce. The futures have gained 34 per cent this year, while gold rose 8 per cent.
