Daily Gold Update

Source: Bloomberg

New York— Gold prices rose on speculation that the slumping dollar will spur inflation, boosting the appeal of precious metals as a hedge. Platinum surged more than $55 an ounce to the highest since September. In May, the dollar fell 6.4 percent against a basket of major currencies, the biggest drop in 24 years. The greenback resumed its decline today, sending commodities higher. The Reuters/Jefferies CRB Index of 19 raw materials rose as much as 2.1 percent. �Gold is rising on demand for a safe harbor,� said Philip Gotthelf, the president of Equidex Brokerage Group in Closter, New Jersey. �We still have considerable uncertainty about the dollar.�

Gold futures for August delivery rose $16.70, or 1.7 percent, to $982.30 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday, the price reached $992.10, the highest for a most-active contract since Feb. 24. Platinum futures for July delivery jumped $48.80, or 3.9 percent, to $1,293.30 an ounce on the Nymex. Earlier, the price reached $1,301.90, the highest since Sept. 9. See full story.