Gold Price Rebounds From Lowest in a Week as Rate Bets Weaken Dollar

New York (Aug 9)  Gold rebounded from the lowest in a week as the dollar weakened, boosting demand for precious metals as a store of value.

The Bloomberg Dollar Spot Index slipped 0.3 percent, the first decline in five sessions. Growing optimism that global central banks will keep interest rates low to stimulate growth is spurring gains in equities, bonds and precious metals. Low borrowing costs are a boon to gold, which doesn’t offer yields of dividends.

“We’re seeing some modest buying interest,” Tai Wong, director of commodity products trading at BMO Capital Markets in New York, said in an e-mail. “The dollar seems to be on a cagey retreat today which keeps sellers cautious.”

Gold futures for December delivery gained 0.4 percent to $1,347.10 an ounce at 10:45 a.m. on the Comex in New York, after slipping 1.9 percent in the previous two sessions. On Monday, prices touched $1,335.30, the lowest since July 29.

Source: Bloomberg