Gold futures rose as a slide in the dollar boosted the appeal of the precious metal as an alternative asset once again. The dollar fell to a three-month low against a basket of six major currencies. The euro gained as much as 0.9 percent against the dollar, topping $1.31 for the first time in almost three months, on speculation that Europe’s economy may recover faster than the U.S. A Labor Department report showed limited employment gains in the U.S., as initial jobless claims dropped by 11,000 in the week ended July 24 from a revised 468,000.
U.S. crude oil prices rose on Thursday in volatile trading as the weak dollar and positive euro zone and German economic data provided lift before a Wall Street reversal helped limit oil's rise. The euro hit a 12- week high against a broadly weaker dollar, lifted by data showing euro zone economic sentiment jumping to a 28-month high, while German unemployment declined for the 13th consecutive month. Despite Thursday's rise, oil has been trading within a $70-$80 range for nearly two months. U.S. oil demand in May was revised down by 4.21 percent to 18.827 million bpd from an earlier estimate of 19.655 million bpd, the U.S. EIA said on Thursday.
Copper rose to a 12-week high on speculation that the global economy will be resilient and metal demand will improve. The European Commission said today that confidence in the region’s economic outlook rose in July to the highest level in more than two years. The dollar dropped as much as 0.8 percent against a basket of six currencies, boosting the appeal of commodities as alternative assets. There was much risk aversion feeling among investors. The dollar hit an 11-week low versus the euro, making dollar-priced metals cheaper for European investors.
