Gold climbs a fifth day as dollar drops on signs of recovery
Tuesday, 1 September 2009
LONDON, Aug. 31 (Bloomberg): Gold rose for a fifth day, the longest run of increases in more than a month, as the dollar weakened on signs a recovery in global economies may be accelerating.
Bullion climbed as positive economic data weakened demand for the US currency, driving the Dollar Index lower. An Institute of Supply Management report due tomorrow in the US may show manufacturing expanded for the first in 19 months, according to a survey of economists.
"There are some signs that demand for jewelry is reviving, helped by a rebound in global economies," said Chris Yu, head of trading with Samsung Futures Co. in Seoul. "The dollar's weakness is also lending support to commodities, including gold."
Gold for immediate delivery rose as much as 0.6 per cent to $960.75 an ounce and last traded at $955.61 at 1:46 p.m. in Singapore. The precious metal has advanced 8.4 per cent this year. The dollar weakened to 92.76 against the yen and Dollar Index was little changed after dropping as much as 0.3 per cent earlier.
Hedge-fund managers and other large speculators increased net-long position in New York gold futures in the week ended Aug. 25, according to US Commodity Futures Trading Commission data.
Speculative long positions, or bets prices will rise, outnumbered short positions by 182,982 contracts on the Comex division of the New York Mercantile Exchange, the Washington based commission said in its Commitments of Traders report. Net long positions rose by 5,452 contracts, or 3 per cent, from a week earlier.
Bullion climbed as positive economic data weakened demand for the US currency, driving the Dollar Index lower. An Institute of Supply Management report due tomorrow in the US may show manufacturing expanded for the first in 19 months, according to a survey of economists.
"There are some signs that demand for jewelry is reviving, helped by a rebound in global economies," said Chris Yu, head of trading with Samsung Futures Co. in Seoul. "The dollar's weakness is also lending support to commodities, including gold."
Gold for immediate delivery rose as much as 0.6 per cent to $960.75 an ounce and last traded at $955.61 at 1:46 p.m. in Singapore. The precious metal has advanced 8.4 per cent this year. The dollar weakened to 92.76 against the yen and Dollar Index was little changed after dropping as much as 0.3 per cent earlier.
Hedge-fund managers and other large speculators increased net-long position in New York gold futures in the week ended Aug. 25, according to US Commodity Futures Trading Commission data.
Speculative long positions, or bets prices will rise, outnumbered short positions by 182,982 contracts on the Comex division of the New York Mercantile Exchange, the Washington based commission said in its Commitments of Traders report. Net long positions rose by 5,452 contracts, or 3 per cent, from a week earlier.