Gold rose for a second straight day, heading for a monthly gain, on speculation that concern over Greece’s debt will increase demand for the precious metal as an alternative to holding currency.
Greece may have its sovereign-debt rating lowered within months if it fails to meet the objectives in its plan to reduce a budget deficit, Moody’s Investors Service said yesterday. The U.S. dollar fell as much as 0.6% against the euro after yesterday climbing to near a nine-month high.
Gold futures for April delivery rose $4.20 U.S., or 0.4%, to $1,112.70 U.S. an ounce at 9:35 a.m. on the New York Mercantile Exchange’s Comex unit. The metal is up 2.6% this month, heading for the first monthly gain since November.
The euro has fallen against the most currencies this month except the pound as concern that Greece will struggle to contain its deficit reduced demand for the 16-nation monetary unit.
Last year, gold rallied 24%, touching a record $1,227.50 U.S. an ounce on Dec. 3, as the dollar fell 2.5% against the euro. Gold priced in euros reached a record on Feb. 19.
Gold prices are poised for strong gains as a "good hedge against volatile times," according to one expert. There’s "a lot of safety in commodities, particularly in gold," he added, adding that he sees "substantial upside" for bullion.
Silver futures for May delivery in New York rose 7.8 cents, or 0.5%, to $16.21 U.S. an ounce. Platinum for April delivery gained $4.40, or 0.3%, to $1,535.60 U.S. an ounce. Palladium for June delivery advanced $5.15, or 1.2%, to $430.65 U.S. an ounce.
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