Daily Gold Update

Source: Bloomberg

New York— Gold prices rose to a one-week high as the dollar slumped, increasing demand for the metal as an alternative investment. The euro climbed as much as 0.9 percent against the greenback as Greek debt concerns eased. Gold surged 24 percent last year as the dollar fell 4.2 percent against a basket of six major currencies, including the euro and yen. �The lower dollar is supportive for gold,� said Frank Lesh, a trader at FuturePath Trading LLC in Chicago. �Traders see a weak dollar and they go in and buy commodities across the board.� Gold futures for June delivery advanced $6.10, or 0.6 percent, to $1,111.50 an ounce on the Comex in New York. Earlier, the most-active contract reached $1,116, the highest price since March 19. The metal is up 1.4 percent this year, heading for a sixth straight quarterly gain.

Gold also rose on demand for a haven, some analysts said. Suicide-bombers killed at least 38 people in two subway attacks in Moscow. The blasts were the deadliest terrorist assaults in the city since 2004. In China, gold demand may double within the next decade, boosting prices as domestic mine output lags behind purchases by investors and jewelers, the World Gold Council said today in a report. Investors and jewelry makers, who account for 80 percent of bullion demand in the country, bought 423 metric tons last year, while mines produced 314 tons, the council said. �China has an insatiable appetite for gold, which looks likely to continue,� the group said. See full story