Gold futures rose for the second straight day as the dollar's decline continued, spurring demand for the metal as an alternative investment. The dollar fell to a four week low against a basket of major currencies after Spain kept its credit rating from Moody's.
By Debarati Roy
October 17, 2012
BusinessWeek
Gold futures rose for the second straight day as the dollar’s decline spurred demand for the metal as an alternative investment.
The greenback fell to a four-week low against a basket of major currencies after Spain kept its investment grade credit rating from Moody’s Investors Service, easing European fiscal concerns. Yesterday, gold climbed 0.5 percent as the dollar fell 0.4 percent.
“The weaker dollar is lending support to gold,” Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said in a telephone interview.
Gold futures for December delivery climbed 0.1 percent to $1,748.80 an ounce at 9:57 a.m. on the Comex in New York. Through yesterday, the price gained 11 percent this year.
Silver futures for December delivery rose 0.2 percent to $33.03 an ounce.
To contact the reporters on this story: Debarati Roy in New York at droy5@bloomberg.net
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
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