TS: Gold Prices Advance As Investors Buy On Recent Dip
Gold prices advanced Wednesday as investors took advantage of a recent dip in prices to buy up the precious metal.
Other commodities, including grains and energy futures, fell.
Gold prices have seesawed in recent days, rising and falling as investors weigh concerns about a weak dollar and the long-term potential for inflation against signs of improvement in the economy. Considered a safe-haven investment, gold is often used as a hedge against a weak greenback and as protection against economic uncertainty.
An increasingly upbeat mood on Wall Street, however, has put pressure on gold as investors' risk appetite increases. Gold prices had fallen 3 percent in two days.
"As much as things look better than they have over the past several weeks, that does not mean we're out of this recession yet," said David Meger, director of metals trading at Alaron. "And based on this premise, there is room for gold in people's portfolios."
Gold for June delivery rose $12 to settle at $938 an ounce on the New York Mercantile Exchange.
