By Pham-Duy Nguyen April 14 (Bloomberg) -- Gold rose as the dollar’s slide enhanced the appeal of the metal as an alternative investment, and signs of a global economic recovery boosted demand for commodities. Palladium surged to a two-year high. The greenback fell against a basket of six major currencies for a fourth straight session, and the Reuters/Jefferies CRB Index of 19 raw materials advanced. Global equities also gained. Gold may climb to a record late this year or in early 2011, said GFMS Ltd., a research company in London. “What you’re seeing is a macro move up in all commodity markets,” said Adam Klopfenstein, a senior market strategist at Lind-Waldock, a broker in Chicago. “The weaker dollar, coupled with a wave of economic optimism, is supporting every commodity.” Gold futures for June delivery rose $6.20, or 0.5 percent, to $1,159.60 an ounce on the Comex in New York. The most-active contract has climbed 5.8 percent this year. The price reached a record of $1,227.50 on Dec. 3. Yesterday, gold fell 0.8 percent, the biggest decline in almost three weeks. “The path of least resistance for gold still remains higher,” said Matt Zeman, a metal trader at LaSalle Futures Group in Chicago. “This is a market that people still like on the long side. We had bargain hunters come in after yesterday’s moderate sell-off.” Palladium futures for June delivery jumped $26.20, or 5 percent, to $548 an ounce on the New York Mercantile Exchange. Earlier, the most-active contract reached $552, the highest price since March 6, 2008. Palladium Deficit Palladium demand may exceed production for most of the next decade as Russia depletes inventories and uses for the metal increase, Neville Nicolau, the chief executive officer of Anglo Platinum Ltd., said yesterday in Rustenburg, South Africa. The company, majority owned by Anglo American Plc, produces 21 percent of the world’s output. Platinum and palladium are used in jewelry and pollution- control parts in cars. Platinum may reach $2,000 an ounce in the second half of this year, UniCredit SpA said in a report. “Dollar weakness will bring about metal strength,” Lind- Waldock’s Klopfenstein said. “Asian countries want to buy metals.” Also in New York, platinum futures for July delivery rose $16.90, or 1 percent, to $1,734.20 on the Nymex. Silver futures for May delivery advanced 16.6 cents, or 0.9 percent, to $18.415 an ounce on the Comex. To contact the reporter on this story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net.

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