Gold Rises for Second Straight Day as Dollar Declines

New York (Oct 7)  Gold futures rose for the second straight day as the dollar’s decline boosted the metal’s appeal as an alternative investment.

The greenback fell as much as 0.2 percent against a basket of 10 major currencies, erasing earlier gains, as yields eased on Treasury 10-year notes. Yesterday, the dollar slumped 0.9 percent, the most since Sept. 18, 2013, while gold climbed 1.2 percent, the most in two months.

“If the 10-year note breaks down further, I can see U.S. rates off another 20 points, which is obviously bearish for the dollar,” Graham Leighton, a trader at Marex Spectron Group in New York, said in a telephone interview. “If it’s bearish for the dollar, it’s bullish for commodities,”

Gold futures for December delivery gained 0.3 percent to $1,210.60 an ounce at 10:13 a.m. on the Comex in New York. Earlier, the price fell as much as 0.4 percent. Yesterday, the metal touched $1,183.30, the lowest for a most-active contract since Dec. 31.

Silver futures for December delivery climbed 0.1 percent to $17.235 an ounce. Earlier, the price reached $17.625, the highest since Sept. 29.

Source: Bloomberg