Gold gained in Asian trading after losses in the dollar drove investors to purchase the precious metal as a store of value. Bullion is up 3.2 percent this week as the dollar headed for a third weekly drop against the euro, its longest run of losses this year, as a U.S. report may show employers pared jobs at a slower pace, sapping demand for the greenback as a haven. “Gold is being valued more and more for its commercial value and less for its functionality as a currency,” Hajime Kitano, chief equity strategist at JPMorgan in Tokyo, said in a report today. Immediate-delivery bullion gained as much as 0.7 percent to $916.63 an ounce, and traded at $915.25 at 3:01 p.m. Singapore time. The metal rose to $925.54 an ounce yesterday, the highest since April 2. A rally in gold above $914 would signal “a bullish bias for a push toward $935, potentially the $950 area,” said a Barclays Capital technical analysis report today. It advised investors “of a more choppy advance than previously estimated” for the metal as a rally in equity drives investor confidence. The regional benchmark MSCI Asia Pacific index of 946 stocks rose for a fifth day as the conclusion of stress tests for U.S. banks relieved financial uncertainty. The Federal Reserve determined that 10 banks need to raise a total of $74.6 billion in capital, a finding that Chairman Ben S. Bernanke said should reassure investors about the soundness of the financial system. Among other precious metals for immediate delivery silver added 0.8 percent to $13.955 an ounce, and palladium rose 0.2 percent to $239.50 an ounce. Platinum gained 0.7 percent to $1,156 an ounce, up 5.8 percent this week.

Source