Gold futures rose for the second straight day as the dollar’s decline boosted the metal’s appeal as an alternative investment.
The greenback fell as much as 0.2 percent against a basket of 10 major currencies, erasing earlier gains, as yields eased on Treasury 10-year notes. Yesterday, the dollar slumped 0.9 percent, the most since Sept. 18, 2013, while gold climbed 1.2 percent, the biggest gain in two months.
“If the 10-year note breaks down further, I can see U.S. rates off another 20 points, which is obviously bearish for the dollar,” Graham Leighton, a trader at Marex Spectron Group in New York, said in a telephone interview. “If it’s bearish for the dollar, it’s bullish for commodities.”
Gold futures for December delivery gained 0.4 percent to settle at $1,212.40 an ounce at 1:43 p.m. on the Comex in New York. Earlier, the price fell as much as 0.4 percent. Yesterday, the metal touched $1,183.30, the lowest for a most-active contract since Dec. 31.
Silver futures for December delivery climbed 0.1 percent to $17.24 an ounce. Earlier, the price reached $17.625, the highest since Sept. 29.
via Bloomberg
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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