Daily Gold Update

Source: Bloomberg

New York— Gold prices rebounded in New York on speculation that the dollar will extend a slump, enhancing the appeal of the precious metal as an alternative asset. The greenback is headed for the second straight weekly loss against a basket of six major currencies. Before today, gold rose 19 percent this year, while the dollar dropped 7.2 percent. �On any type of dip, there will be buyers,� said Tom Hartmann, an AltaVest Worldwide Trading LLC analyst in Mission Viejo, California. �People want exposure to gold. Gold is directly dependent on the direction of the dollar, and over the long term, the dollar is headed lower.� Gold futures for December delivery rose 90 cents, or 0.1 percent, to $1,051.50 an ounce on the New York Mercantile Exchange�s Comex division. Earlier, the metal fell as much as 0.7 percent. Prices rose 0.3 percent this week, the third straight weekly increase for the most-active contract. The U.S. Dollar Index, the six-currency gauge, pared gains today after jumping as much as 0.6 percent.

President Barack Obama has raised U.S. marketable debt to a record $7.01 trillion as he borrows to revive the world�s biggest economy. The Federal Reserve has kept its target rate for overnight bank loans at zero to 0.25 percent for almost a year. Confidence among U.S. consumers dropped more than forecast in October, indicating concern that an economic recovery will be fragile. �Gold represents an asset which can protect investors from both inflationary and deflationary threats,� Deutsche Bank AG said in a report. See full story