BLBG: Gold Advances to 1-Week High in London Trade as Dollar Weakens
By Rachel Graham
Oct. 30 (Bloomberg) -- Gold advanced to its highest in more than a week in London as the dollar fell against currencies including the euro, buoying demand for the metal as a hedge against further weakness. Platinum also rose.
The U.S. Dollar Index, which measures the U.S. currency's performance against six counterparts, fell for a second day after the Federal Reserve reduced its target lending rate to the lowest in half a century.
``The weaker dollar sentiment overnight has enabled gold to continue base building,'' James Moore, an analyst at London-based TheBullionDesk.com, wrote in a report today.
Gold for immediate delivery rose $17.20, or 2.3 percent, to $772.15 an ounce as of 8:56 a.m. in London. Futures for December added $17.50, or 2.3 percent, to $771.50 in electronic trading on the Comex division of the New York Mercantile Exchange.
Among other metals for immediate delivery, silver rose 43 cents, or 4.4 percent, to $10.305 an ounce. Platinum gained $60.75, or 7.5 percent, to $868.75 an ounce and palladium advanced $5.25, or 2.6 percent, $204.25.
To contact the reporter on this story: Rachel Graham in London at rgraham13@bloomberg.net
