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Gold May Decline on Concern Over Slack Physical Demand
Apr 25,2012 09:35CST
industry news
Source:SMM
Gold rose for the third time in four sessions as a weaker dollar increased the appeal of the precious metal as an alternative investment.

Gold rose for the third time in four sessions as a weaker dollar increased the appeal of the precious metal as an alternative investment.

The dollar declined as much as 0.4 percent against a basket of currencies as lower yields of Spanish and Italian bonds eased concerns that Europe’s debt crisis is worsening. The pound reached an almost six-month high against the dollar after the Debt Management Office said Britain’s net-financing requirements had fallen.

“News of some stability in Europe is pushing the dollar lower,” Sterling Smith, a market analyst at Country Hedging in St. Paul, Minnesota, said in a telephone interview. “People are willing to consider riskier assets today.”

Gold futures for June delivery climbed 0.7 percent to settle at $1,643.80 an ounce at 1:42 p.m. on the Comex in New York. Prices have gained 4.9 percent this year.

Mexico boosted its gold reserves by 16.8 metric tons to 122.6 tons last month, according to data on the International Monetary Fund’s website. Nations including Turkey, Russia and Kazakhstan also increased bullion holdings in March, the data show.

Silver futures for July delivery advanced 0.7 percent to $30.815 an ounce on the Comex.

On the New York Mercantile Exchange, palladium and platinum retreated for the second straight day. Palladium futures for June delivery fell 0.8 percent to $665.80 an ounce. Platinum futures for July delivery slipped 0.5 percent to $1,548.10 an ounce.

 

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