BS: Gold Climbs for First Day in Five on Weaker Dollar, Price Slump
By Nicholas Larkin and Jae Hur
Nov. 18 (Bloomberg) -- Gold climbed for the first time in five days in London, ending the longest losing streak since July, as a weaker dollar boosted demand for an alternative investment.
The euro rose against the dollar on optimism a bailout for Ireland will prevent contagion across the region’s larger debt markets, and before a report that may show U.S. initial jobless claims rose last week. Bullion, which typically moves inversely to the greenback, slumped 5.2 percent the previous four days. It reached a record $1,424.60 an ounce on Nov. 9.
“Short-term uncertainty about the U.S. dollar is supporting prices,” said Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland. “Opportunistic buyers with a longer time horizon are valuing these price levels as a good opportunity.”
Immediate-delivery bullion added $20.52, or 1.5 percent, to $1,356.52 an ounce at 9:25 a.m. in London. The metal for December delivery was 1.4 percent higher at $1,355.80 on the Comex in New York.
Ireland’s government will hold talks with the European Union, International Monetary Fund and the European Central Bank “over a number of days,” a Finance Ministry spokesman said yesterday. European policy makers will scan the books of Ireland’s debt-laden banks to determine whether the government can fix the banking system on its own or needs to fall back on the 750-billion-euro ($1 trillion) European Financial Stability Fund.
U.S. Jobless Figures
A U.S. Labor Department report today will show the number of Americans filing initial jobless claims increased 6,000 last week, according to the median forecast of economists in a Bloomberg News survey.
Silver probably will top $30 an ounce in 2011 on demand by investors seeking a protection of wealth, London-based research firm GFMS Ltd. said in a report today. The metal will average $19.94 an ounce this year and about $28 next year, GFMS said. Prices have averaged about $19.09 so far this year.
Silver for immediate delivery in London gained 3.4 percent to $26.51 an ounce. It reached a 30-year high of $29.36 last week and is up 57 percent this year.
Palladium climbed 3.1 percent to $683.15 an ounce, after yesterday advancing 3 percent. Platinum was 1.3 percent higher at $1,658 an ounce after falling the previous four days. The metal yesterday slipped to $1,625.50, the lowest level since Sept. 28.
--With assistance from Sungwoo Park in Seoul, Yoshiaki Nohara in Tokyo and Ron Harui in Singapore. Editors: John Deane, Claudia Carpenter.
To contact the reporters on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net; Jae Hur in Tokyo at jhur1@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
