Gold climbs on weak dollar, await Fed move
Tuesday, 2 November 2010
SINGAPORE, Nov 1 (Commodity Online): Gold extended gain in Asian trade Monday ahead of crucial Fed meet as the dollar dropped further against major currencies.
Gold for immediate delivery was seen trading at $ 1358.51 an ounce at 12.30 pm Singapore time while US gold futures gained 0.3 per cent to $1,361.9 an ounce.
Analysts said the precious yellow metal is likely to gain further during the day as Asian shares rallied Monday while the dollar struggled to hold ground.
They said investors expected more declines in the dollar ahead of a US Federal Reserve's policy meeting to shore up the economy, while silver and palladium hit multi-year peaks.
The dollar fell 0.4 per cent against a basket of currencies, but jumped sharply against the yen on talks of possible intervention.
Gold for immediate delivery was seen trading at $ 1358.51 an ounce at 12.30 pm Singapore time while US gold futures gained 0.3 per cent to $1,361.9 an ounce.
Analysts said the precious yellow metal is likely to gain further during the day as Asian shares rallied Monday while the dollar struggled to hold ground.
They said investors expected more declines in the dollar ahead of a US Federal Reserve's policy meeting to shore up the economy, while silver and palladium hit multi-year peaks.
The dollar fell 0.4 per cent against a basket of currencies, but jumped sharply against the yen on talks of possible intervention.