Gold Continues to Rise on Yen Decline

Gold rose, heading for a weekly gain, as declines in the Japanese yen eased speculation that investors will sell the metal to make up for losses in other markets.

Gold for immediate delivery rose $1.90, or 0.3 percent, to $653.70 an ounce at 9:28 a.m. London time. Prices are up 1.8 percent this week, heading for the eighth gain in nine weeks.

Since a plunge in Chinese stocks on Feb. 27 triggered $3.3 trillion in global equity losses, gold has been moving in line with U.S. dollar movements, a reversal of its historical correlation to the gold price, said Darren Heathcote, head of trading at Investec Bank (Australia) Ltd. in Sydney.