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Gold Rallies to 4-Wweek High on Weak Dollar
Jan 12,2010 09:31CST
industry news

CHICAGO, Jan. 11 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange soared to a 4-week high on Monday as U. S. dollar dropped sharply. Silver and platinum both rose.

The most active gold contract for February delivery gained 12.50 U.S. dollars, or 1.1 percent, to finish at 1,151.40 dollars an ounce. Earlier in the session, the yellow metal touched as high as1,163 dollars, the strongest level since Dec. 8.

A soft dollar, which fell to a 3-week low on Monday as investors focused on strong economic data from China, played the most important role to push the precious metal higher.

A report showed Chinese exports jumped 17.7 percent in December from the previous month. The data fueled speculation that the global economy is on the mend and limits demand for the dollar as a safe haven.

The greenback was also hurt by government figures released last Friday that showed 85,000 jobs were lost in December, after 4,000 jobs were added in November.

The dollar index, a gauge measuring the greenback's value against a basket of rival currencies, fell 0.495 to 77.16 by the end of gold floor trading time, hovering around its lowest level since mid December. Gold's demand of hedge against dollar's depreciation is strengthened.

March silver was up 22.5 cents to 18.695 dollars per ounce. April platinum rose 21.90 dollars to 1,592.50 dollars an ounce.

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