BLBG:Gold Set for Weekly Gain as Weaker Dollar Spurs Investor Demand
Gold headed for a weekly gain in London as a weaker dollar spurred demand for the metal as an alternative investment. Palladium was set for its best week in two months.
The U.S. Dollar Index, a measure against six major trading partners, reached a two-week low amid speculation Europe’s policy makers will agree to keep aid flowing to Greece when they meet on Nov. 26. The nation has been negotiating with the International Monetary Fund and politicians over steps needed to qualify for the release of loan installments frozen since June.
“The dollar has come off a bit,” which is supporting gold, Marc Ground, a commodity strategist at Standard Bank Plc in Johannesburg, said today by phone. “Some participants in the U.S. will be back in the office today and that may support gold some more,” he said, referring to yesterday’s Thanksgiving holiday.
Gold for immediate delivery rose 0.2 percent to $1,732.58 an ounce by 9:24 a.m. in London. Prices are up 1.1 percent this week. Gold for December delivery was up 0.2 percent at $1,732.40 on the Comex in New York. There was no settlement yesterday because of the holiday.
Bullion’s 50-day moving average is at about $1,740.54, near this month’s high at $1,739.04, Bloomberg data show. Gains above there would be a “crucial bullish development,” UBS AG said today in an e-mailed report. The next targets would be $1,748.95, the 61.8 percent retracement of the October-to- November decline, and the October high at about $1,795, it said.
Holdings in gold-backed exchange-traded products reached a record 2,605.3 metric tons on Nov. 21, data compiled by Bloomberg show. The U.S. Mint sold 67,000 ounces of American Eagle gold coins this month, exceeding the 59,000 ounces for all of October, data on its website show.
Silver for immediate delivery added 0.2 percent to $33.405 an ounce, after reaching $33.505, the highest since Oct. 15. Platinum was 0.1 percent lower at $1,579. Palladium fell 0.2 percent to $654.25 an ounce. It’s up 4.3 percent this week, the most since Sept. 14.
To contact the reporters on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net
To contact the editor responsible for this story: John Deane at jdeane3@bloomberg.net
