Daily Gold Update

Source: Bloomberg

New York— Gold climbed to the highest in almost two months as a weaker dollar boosted demand for the metal as an alternative investment. Silver reached a seven-week high. The U.S. Dollar Index, a six-currency gauge of the greenback�s strength, slid as much as 1.1 percent to a 2009 low as gains in manufacturing in the U.S., China and the U.K. reduced demand for a haven. Gold tends to rise when the dollar falls. The metal touched $1,007.70 an ounce, this year�s high in New York, on Feb. 20.

Gold futures for December delivery climbed $3, or 0.3 percent, to $958.80 an ounce on the New York Mercantile Exchange�s Comex division, after earlier touching $966.90, the highest for a most-active contract since June 5. �Dollar weakness and a recovery in risk appetite could push the metal higher,� Pradeep Unni, an analyst at Richcomm Global Services in Dubai, said in a report. The dollar index fell for a third straight session after July�s 2.2 percent drop. See full story.