Gold may advance for a second day as the dollar’s weakness spurs demand for the precious metal as an alternative asset.
Gold for immediate delivery rose as much as 0.3 per cent to $US1158.50 an ounce before trading little changed at $US1157.65 in Singapore. The metal touched $US1170 on April 12, the highest level since December 4. The dollar was little changed after weakening for four days against six major currencies.
''I’m mildly bullish on gold against the backdrop of the euro’s strength,'' said Hwang Il Doo, a senior trader with KEB Futures in Seoul. ''Still, one-way rises in prices are unlikely given that gold has touched a high recently.''
Gold may trade at $US1050 to $US1150 an ounce in the next few months before reaching a record later this year or early in 2011 as investors’ mounting concern about government debt spurs demand, researcher GFMS said yesterday.
The precious metal needs to rise 6 per cent to match the record $US1226.56 reached in December. Bullion climbed for a ninth consecutive year in 2009 as near-zero US interest rates and increased government spending weighed on the dollar, and nations including India and Russia boosted reserves of the metal.
Palladium, near a 25-month high, is benefiting from a revival of the US car industry and continued strong sales figures in China, Commerzbank AG said in a report yesterday.
Palladium, which touched $US551.40 an ounce yesterday, was little changed at $US546.75.
The auto industry, where palladium is used to make catalysts for diesel engines, accounted for approximately half of total palladium consumption last year, Commerzbank said. High investment demand was also supporting prices, it said.
Platinum was little changed at $US1727.25 an ounce after touching $US1740.75 on April 12, the highest price since August 1 2008. Silver was also little changed at $US18.455 an ounce.
