Gold up nearly 2 percent as dollar slides, oil firms
(Reuters) – Gold rose nearly 2 percent in Europe on Monday as oil prices climbed and the dollar slipped to a six-week low against a basket of currencies, boosting the precious metal’s appeal as a currency hedge.
Commodities across the board benefited from a sharper appetite for risk, dealers said, with world stocks rallying and equities touching a 10-month high in Asia as investors were tempted back into higher-yielding assets.
Spot gold rose to a five-week high of $953.70, its firmest since June 12, and was bid at $952.20 an ounce at 1052 GMT, against $936.50 an ounce late in New York on Friday.
“There is a combination of both a weaker dollar (and) appetite for commodities coming back with the hope of an economic recovery,” said Alexander Zumpfe, a trader at precious metals house Heraeus.
“From a pure technical point of view, we might see some higher prices over the next couple of days.”
The dollar slid to a six-week low against the euro and versus a basket of six major currencies .DXY as rising stock markets boosted appetite for higher-yielding currencies seen as riskier.
Other commodities also benefited from stronger risk appetite, with oil climbing nearly $1 a barrel and copper rising to its highest level since October.
Categorised as: Gold News