Daily Gold Update

Source: Bloomberg

New York— Gold prices rose the most in four weeks on speculation that the dollar�s rally will stall, boosting demand for the metal as an alternative investment. The greenback fell from a six-month high against the euro, shedding as much as 0.5 percent. Gold fell 1.1 percent in January as the dollar rallied 3.4 percent. �The dollar is losing its mojo today,� said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago. �The gold bulls are coming back after last month�s bloodshed.� Gold futures for April delivery rose $21.20, or 2 percent, to $1,105 an ounce on the Comex division of the New York Mercantile Exchange, the biggest gain for the most-active contract since Jan. 4. The metal dropped 0.5 percent last week.

Gold advanced 24 percent last year as the Federal Reserve held interest rates close to zero percent to revive the economy. Futures climbed to a record $1,227.50 on Dec. 3. President Barack Obama today sent Congress a $3.8 trillion budget that puts an emphasis on job creation, including $100 billion in additional stimulus spending. The deficit in the year starting Oct. 1 is projected at $1.3 trillion. �Those budget numbers have people freaked out,� Zeman said. �We continue to print money with reckless abandon, so that�s why people are buying up hard assets like gold and oil.� See full story.