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 biggest gain 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 0.4 percent to settle at $1,212.40 an ounce at 1:43 p.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 $17.24 an ounce. Earlier, the price reached $17.625, the highest since Sept. 29.
On the New York Mercantile Exchange, platinum futures for January delivery gained 1 percent to $1,261.90 an ounce. Prices dropped yesterday to $1,186.50, the lowest since July 2009. Palladium futures for December delivery advanced 2.7 percent to $787 an ounce, the biggest gain since Oct. 17, 2013.-Bloomberg
