Gold rose in Asia for the seventh day as the dollar traded near a two-week low against the euro...
Gold rose in Asia for the seventh day as the dollar traded near a two-week low against the euro, boosting the appeal of the metal as an alternative investment.
Bullion, headed for its longest winning streak in almost 19 months, rose as traders increased bets the Federal Reserve will delay increasing interest rates to prevent further credit-market writedowns. U.S. reports tomorrow may show falling house prices are eroding confidence among consumers. Crude oil also climbed to more than $135 a barrel, boosting the appeal of the precious metal as a hedge against inflation.
Investors noted that the euro is trading above $1.56 against the U.S. dollar again, said William Kwan, Singapore-based bullion director at Gold Capital Management. Also, inflation in some Asian nations ``is getting a bit out of hand and this is a very bullish factor for gold'' as an inflation hedge, he said.
Bullion for immediate delivery was up 0.3 percent at $905.24 an ounce at 11:15 a.m. in Singapore from $902.30 in New York on June 20. Gold rose to as high as $907.84 an ounce on June 20 when the euro rallied above $1.56 for the first time since June 10. Silver was up 0.4 percent at $17.4375 an ounce at the same time.
Gold has gained 8.6 percent this year while the dollar has fallen by 6.6 percent against the euro. The dollar traded at $1.5612 against the euro at 11:15 a.m. in Singapore, from $1.5606 in New York on June 20.
The dollar bought 107.28 yen, close to the weakest level since June 12, from 107.33 late last week. Crude oil futures advanced 0.9 percent to $135.78 a barrel.
A S&P/Case-Shiller report tomorrow may show home prices in 20 U.S. metropolitan areas dropped 15.9 percent in April from a year earlier, the most since records were first published in 2001, a Bloomberg News survey of economists shows. The Conference Board's consumer confidence index probably fell to 56.4 in June, the lowest since October 1992, from 57.2 in May, according to a separate survey.
Gold for August delivery gained 0.4 percent to $907.30 an ounce in after-hours electronic trading on Comex at 10:15 a.m. Singapore time.
Gold for April 2009 delivery was little changed at 3,149 yen a gram ($913 an ounce) on the Tokyo Commodity Exchange at the 11 a.m. local time break.