Gold climbs to three-week high in London
Tuesday, 21 July 2009
LONDON, July 20 (Bloomberg): Gold climbed to a three-week high in London as a weaker dollar and higher oil prices boosted the metal's appeal as an alternative investment and hedge against rising consumer prices.
The US Dollar Index, which measures the currency's value against six monies, fell as much as 0.6 per cent to a six-week low on speculation European and US reports this week will show the global recession is easing, sapping demand for the greenback as a refuge. Oil climbed to the highest in almost two weeks.
"The underlying driver is the dollar," Dan Smith a Standard Chartered Plc analyst in London, said by telephone today. He also cited "a general rally across the commodity complex."
Bullion for immediate delivery gained as much as pc10, or 1.1 per cent, to pc947.50 an ounce, the highest since June 26. The metal, which climbed 2.7 per cent last week, traded at pc946.73 by 9:23 a.m. in London. August gold futures added 1 per cent to pc946.60 an ounce on the New York Mercantile Exchange's Comex division.
Crude-oil futures, used by some investors as an indicator of the outlook for inflation, climbed as much as 1.6 per cent to pc64.57 a barrel in New York. The fuel advanced 6.1 per cent last week, while the dollar index lost 1.1 per cent. Gold tends to move inversely to the US currency.
Eighteen of 32 traders, investors and analysts surveyed by Bloomberg News, or 56 per cent, said bullion would gain this week as investors seek a hedge against inflation. Eleven forecast lower prices and three were neutral.
Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, fell 0.3 metric ton to 1,094.54 tons on July 17, the company's Web site showed.
Silver for immediate delivery in London gained as much as 1.9 per cent to pc13.685 an ounce, the highest since July 2. The metal last traded at pc13.645. Platinum added 0.4 per cent to pc1,181 an ounce, and palladium was 1.3 per cent higher at pc251 an ounce.
The US Dollar Index, which measures the currency's value against six monies, fell as much as 0.6 per cent to a six-week low on speculation European and US reports this week will show the global recession is easing, sapping demand for the greenback as a refuge. Oil climbed to the highest in almost two weeks.
"The underlying driver is the dollar," Dan Smith a Standard Chartered Plc analyst in London, said by telephone today. He also cited "a general rally across the commodity complex."
Bullion for immediate delivery gained as much as pc10, or 1.1 per cent, to pc947.50 an ounce, the highest since June 26. The metal, which climbed 2.7 per cent last week, traded at pc946.73 by 9:23 a.m. in London. August gold futures added 1 per cent to pc946.60 an ounce on the New York Mercantile Exchange's Comex division.
Crude-oil futures, used by some investors as an indicator of the outlook for inflation, climbed as much as 1.6 per cent to pc64.57 a barrel in New York. The fuel advanced 6.1 per cent last week, while the dollar index lost 1.1 per cent. Gold tends to move inversely to the US currency.
Eighteen of 32 traders, investors and analysts surveyed by Bloomberg News, or 56 per cent, said bullion would gain this week as investors seek a hedge against inflation. Eleven forecast lower prices and three were neutral.
Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, fell 0.3 metric ton to 1,094.54 tons on July 17, the company's Web site showed.
Silver for immediate delivery in London gained as much as 1.9 per cent to pc13.685 an ounce, the highest since July 2. The metal last traded at pc13.645. Platinum added 0.4 per cent to pc1,181 an ounce, and palladium was 1.3 per cent higher at pc251 an ounce.