Gold price halts 3-day slump as palladium reaches lowest in 2 months
London (Jun 8) Gold rose, ending a three-day decline as the dollar stabilized. Palladium fell for a seventh day, the longest run in 16 months, and reached a two-month low.
The Bloomberg Dollar Spot Index was little changed. The currency slid after a French official said U.S. President Barack Obama told delegates at a Group-of-Seven summit on Sunday that the strong dollar posed a problem. The dollar then pared its declines after the White House denied Obama had said the currency’s strength was an issue.
“We have to put the gold gains this morning squarely on the shoulders of the dollar,” Ole Hansen, head of commodity strategy at Copenhagen-based Saxo Bank A/S, said by phone. “Obama’s apparent comments, despite being later denied, probably did give the dollar bulls some pause for thought this morning.”
Bullion for August delivery rose 0.6 percent to $1,174.60 an ounce at 6:34 a.m. on the Comex in New York. The metal for immediate delivery climbed 0.2 percent to $1,174.40, according to Bloomberg generic pricing.
Palladium for September delivery retreated 0.2 percent to $749.75 an ounce. The metal earlier touched the lowest level since April 6.
Silver for July delivery rose 0.6 percent to $16.075 an ounce. Platinum climbed 0.7 percent to $1,099.90 an ounce.