Gold price rises on weaker dollar
London (Jun 10) Gold rose for a third day as the dollar weakened. Silver advanced as investors added cash to exchange-traded funds for a sixth day, the longest stretch since 2013.
The Bloomberg Dollar Spot Index slid 0.8 percent, extending this week’s retreat after President Barack Obama on Monday denied expressing concern about the currency’s strength in private conversations at a Group of Seven summit. Speculation that Greece will ultimately leave the euro is also boosting demand for gold, Commerzbank AG wrote in a report.
Gold is recovering after last week’s slump to a two-month low after a better-than-expected US jobs report bolstered the case for the Federal Reserve to raise US interest rates. Greek Prime Minister Alexis Tsipras plans to meet the leaders of the euro area’s two biggest economies in Brussels on Wednesday.
“A cheaper dollar is one of the factors supporting gold prices at the moment,” Jens Pedersen, a senior analyst at Danske Bank A/S, said by phone from Copenhagen. “We are also seeing some overall uncertainty from the Greek debt negotiations feeding into gold.”
Bullion for immediate delivery increased 0.8 percent to $1,186.03 an ounce at 10.57am in London, according to Bloomberg generic pricing. The metal is up about 1 percent this week.
Gold for August delivery rose 0.5 percent to $1,183 on the Comex in New York.
Silver for immediate delivery climbed 1 percent to $16.1445 an ounce, ending a five-day run of losses. Holdings in exchange-traded products backed by the metal have risen 1 percent to 19,336.9 tons since June 1, data compiled by Bloomberg as of Tuesday showed.
Platinum rose 0.8 percent to $1,115.81 an ounce. Palladium added 0.7 percent to $746.60, the first advance in nine days.