BLBG:Gold Is Seen Advancing as Weaker Dollar Spurs Investment
Gold was seen advancing for a second day in London, cutting a weekly decline, as a weaker dollar spurs demand for the metal as an alternative investment.
The dollar declined for a second day against the euro. Gold reached $1,796.10 an ounce on Oct. 5, the highest since Nov. 14, after the Federal Reserve announced a third round of quantitative easing and central banks from Europe to Japan pledged more action to bolster economies.
“The U.S. dollar is again weaker against the euro,” which is supporting gold, Peter Fertig, the owner of Quantitative Commodity Research Ltd. in Hainburg, Germany, said today by phone. “I expect gold to head higher.”
Bullion for immediate delivery rose 0.1 percent to $1,769.25 an ounce by 9:35 a.m. in London. Prices are down 0.6 percent this week. December-delivery futures were little changed at $1,770.90 on the Comex in New York.
Holdings in gold-backed exchange-traded products were little changed at a record 2,583 metric tons yesterday, data compiled by Bloomberg show. Assets climbed 9.6 percent in 2012.
Labor Department figures showed yesterday initial applications for U.S. jobless benefits fell 30,000 to total 339,000 in the week ended Oct. 6, the fewest in more than four years. Economists surveyed by Bloomberg expect U.S. data today to show consumer confidence hovered near the strongest since May.
Silver for immediate delivery fell 0.1 percent to $33.955 an ounce. Platinum rose 0.1 percent to $1,678.74 an ounce. Palladium fell 0.2 percent to $650 an ounce.
To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
