Tuesday, May 5, 2009
Gold rose to a one-week high in New York and London as the dollar declined against the currencies of major trading partners. Platinum and silver also climbed.
Gold jumped 1.8 percent yesterday as the dollar fell to a four-week low against the euro. Some investors have bought gold betting on “negative data” about U.S. banks in a report from the Federal Reserve scheduled in two days, said Manqoba Madinane at Standard Bank Group Ltd. in Johannesburg. The dollar index has slid 0.9 percent this week.
“The euro/dollar is the main factor at the moment,” Madinane said by phone. “The market has already priced in negative data.”
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June gold futures climbed $7.80, or 0.9 percent, to $910 an ounce by 10:17 a.m. on the Comex division of the New York Mercantile Exchange. The metal earlier rose to $916.70, the highest since April 27. Gold for immediate delivery in London rose as much as 1.6 percent to $916.09 an ounce.
Gains in the metal accelerated after prices rose above a trend line starting from Feb. 20, triggering buying by traders who follow charts and graphs, said Eugen Weinberg, an analyst at Commerzbank AG in Frankfurt. The metal may climb to $925 on the technical buying as early as this week, he said.