BLBG:Gold Climbs In New York As Draghi Comments Give Boost To Euro
Gold advanced in New York after European Central Bank President Mario Draghi said the ECB will do whatever is needed to preserve the euro.
The dollar fell 0.5 percent against the euro, boosting demand for precious metals as an alternative investment. Gold in euros, traded as XAUEUR, has climbed 11 percent this year, compared with 3 percent for gold traded in dollars.
“The spotlight continues to be on gold priced in alternative currencies,” Edel Tully, an analyst at UBS AG in London, said in a report today. “With headline risks more focused on Europe, XAUEUR is essentially acting as the barometer for gold market strength right now.”
Gold futures for December delivery rose 0.7 percent to $1,624.10 an ounce by 7:15 a.m. on the Comex in New York. The gold traded in euros yesterday climbed to 1,325.60 euros ($1,620.55) an ounce, the highest since Feb. 29.
Silver for September delivery gained 0.7 percent to $27.655 an ounce.
To contact the reporter on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
