MW; Gold prices add to six-week highs as dollar weakens
By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- Gold futures on Tuesday returned to six-week highs, backed by a softer dollar and thinking that investor worries about the globe's economic stability would bolster demand for the commodity, seen as reasonably safe investment.
"Continued fears over the economic outlook have encouraged investor appetite for gold over the last couple of weeks. Asian buyers have been steady, although there is evidence that some end users have been cashing in on the higher levels," noted analysts at Action Economics.
"Sellers have capped further gains around $1,227and more offers are tipped into the $1,230 region. However, physical buying interest out of India ahead of festival season should leave risk on the topside in the very near-term," the analysts added.
Up for a second session, gold for December delivery was late up 90 cents at $1,227.00 an ounce in electronic trade on Globex. On Monday, the contract closed at $1,226.20 an ounce, its' highest close since late June.
The metal drew some support by the slide of the U.S. dollar, making the dollar-denominated commodity less costly for holders of foreign currencies.
On Tuesday, the dollar index (DXY 82.15, -0.38, -0.46%) , which contrasts the greenback to six currency rivals, fell 0.3% to 82.254.
