Gold rebounded from the lowest price in three weeks after the dollar fell to a record against the euro, boosting the appeal of the precious metal as an alternative investment.
The dollar dropped on speculation a housing slump and credit-market turmoil will force the U.S. Federal Reserve to cut interest rates again this year. Gold has gained 24 percent this year and the euro has climbed 12 percent against the dollar.
Gold futures for December delivery rose $13.40, or 1.7 percent, to $791.40 an ounce on the Comex division of the New York Mercantile Exchange. The price closed yesterday at the lowest since Oct. 25. The metal dropped 5.7 percent last week, the most since early March.
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Gold Rallied on Weak Dollar
Gold revived from the lowest price in three weeks after the dollar fell to a record against the euro
