Gold rose the most in two weeks after the dollar halted a six-session rally against the euro, boosting the appeal of the precious metal as an alternative investment.
The euro rebounded from the lowest level in almost a year after Greece asked for a bailout from the European Union and the International Monetary Fund, easing concern that mounting debt will erode the value of the 16-nation currency. Gold rose 24% in 2009 as the dollar fell 2.5% against the euro.
Gold futures for delivery in June rose $10.80 U.S., or 0.9%, to $1,153.70 U.S. an ounce on the Comex in New York, the biggest gain for a most-active contract since April 7. The metal climbed 1.5% this week.
Greece asked the E.U. and IMF to activate a loan of 45 billion euros ($60 billion U.S.). Gold priced in euros rose to a record today on lingering debt concerns.
Gold touched $1,135.20 U.S. before rebounding on speculation the economic recovery in the U.S. will spur the Federal Reserve to raise interest rates.
Orders for durable goods excluding transportation rose 2.8% in March, the most since the recession began in December 2007, Commerce Department data show. Purchases of new homes in the U.S. surged 27%, the most since April 1963, the agency said.
The Fed has kept its benchmark interest rate at 0% and 0.25% since December 2008 to revive the economy, helping send the dollar down 4.2% against a basket of six major currencies in 2009. Higher borrowing costs may extend the dollar’s 4.5% rally this year and send gold lower, analysts said.
Silver futures for May delivery rose 18.4 cents U.S., or 1%, to $18.223 U.S. an ounce on the Comex, capping a 3.1% gain this week.
Platinum futures for July delivery dropped $2.50 U.S., or 0.1%, to $1,741.70 U.S. an ounce on the New York Mercantile Exchange. The metal rose 2.7% this week.
Palladium futures for June delivery declined $1.90 U.S., or 0.3%, to $563.20 U.S. an ounce. This week, the price climbed 5.9%, the fourth straight gain.
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