Gold Rises to Seven-Week High as U.S. Unemployment Spurs Demand for Haven

Gold futures rose to a seven-week high after a U.S. report showed an unexpected jump in initial jobless claims, adding to concern that the economy is slowing and boosting demand for bullion as a haven.

Claims rose by 12,000 to 500,000 in the week ended Aug. 14, the Labor Department said today. That exceeded all estimates of economists surveyed by Bloomberg News. Before today, gold climbed 12 percent this year, outperforming equities, on signs that global growth may be losing momentum.

“There’s tremendous uncertainty and the recovery is spotty,” Caesar Bryan, who manages $609 million in the GAMCO Gold Fund Inc., said today in a Bloomberg Television interview in New York. Gold “is in a multiyear bull market. Prices are going to go up.”

Gold futures for December delivery rose $4.60, or 0.4 percent, to $1,236 an ounce at 9:50 a.m. on the Comex in New York, after touching $1,236.80, the highest price for a most- active contract since July 1.

“Concerns about a slowing economy in the second half still prevail, supporting the safe-haven asset,” Lee Suk Jin, a commodities analyst with Seoul-based Tong Yang Securities Inc., wrote in a report today. “In the short term, gold may continue to be propped up by demand from investors trying to avoid risky assets due to uncertainties in the markets.”

Before today, gold futures gained 5.9 percent in the previous three weeks as concern deepened that the global recovery may falter.

Gold May Climb in Asia as Prices Near Three-Month Low Spur Buyer Demand

Gold may advance for a second day on speculation the metal’s prices near a three-month low will help shore up demand.

Gold for immediate delivery traded little changed at $1,165.15 an ounce at 8:38 a.m. in Singapore. December-delivery futures rose 0.5 percent.

“The correction phase of gold is about to be completed and the market will see some period of consolidation near this or a slightly lower level until next week,” said Wallace Ng, executive director with ABN Amro NV in Hong Kong.

Bullion, which touched a record $1,265.30 on June 21, has since slumped 8 percent and fell as low as $1,157.03 this week, the lowest since April 27, as a rally in global equities curbed demand for bullion. Asian stocks have climbed 5.7 percent in July, snapping a two-month decline, while gold fell 6.2 percent, the first monthly decline since March, as investors reduced holdings of safer assets in search of higher returns.

Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, fell for a third day yesterday. Assets under management have dropped 2.9 percent this month.

Investors are shifting their money into riskier asset classes, Eugen Weinberg, Frankfurt-based head of commodity with Commerzbank AG, wrote in a report. Still, “in the mid to long term the physical buying interest is expected to pick upon the currently low price level and thus prevent a clear slide of the gold price.”

Physical demand for gold from India, China and the wider Asian region was “very visible” as gold prices declined this week, UBS AG analyst Edel Tully said yesterday. Still, physical demand isn’t sufficient to prop up the price and the short-term outlook was “increasingly murky,” she said.

“Few investors are likely to add to their long gold exposure down here, afraid of catching a falling knife, until some sense of stability is restored to price direction,” London-based Tully said in a report.

Silver increased 0.5 percent to $17.555 an ounce, platinum added 0.2 percent to $1,542.50 an ounce and palladium advanced 0.4 percent to $471.25 an ounce.

Gold Advances in New York on Demand for Alternative to Weakening Dollar

Jul 15, 2010 - Gold futures rose on speculation that the dollar will weaken further, boosting demand for the precious metal as an alternative asset.

The dollar slid as much as 1.1 percent against a basket of six major currencies and touched a two-month low against the euro. Gold historically has moved inversely to the dollar. The metal reached a record $1,266.50 an ounce on June 21 and rallied to all-time highs in euros, British sterling and Swiss francs as investors sought a haven during Europe’s fiscal crisis.

“Gold is following the euro higher,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “Gold’s historical relationship to the dollar is coming back.”

Gold futures for August delivery increased $1.30, or 0.1 percent, to $1,208.30 on the Comex. The price has gained 10 percent this year.

The euro rose above $1.29 for the first time since May as demand for Spanish government bonds eased concerns that the nation wouldn’t be able to fund its deficit.

Investors who had sold euros and bought dollars and gold as havens during the height of Europe’s debt worries may now be reversing course, analysts said.

‘Love Triangle’

“The love triangle between gold, the dollar, and the euro is playing out,” said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago. “A lot of what you’re seeing is the unwinding of those euro positions. Gold still looks good to hold and won’t slide too much.”

The Federal Reserve Bank of New York’s general economic index and the Philadelphia Fed’s gauge both fell in July to 5.1, reflecting the slowest pace of manufacturing expansion this year. Readings greater than zero signal growth.

The Fed has kept its benchmark interest rate at zero to 0.25 percent since December 2008 to stimulate growth. The European Central Bank’s main rate is 1 percent.

“We remain bullish on gold, although we may soon begin to focus upon gold in dollar terms rather than solely seeing gold in terms of the euro, sterling or even the Swiss franc,” said Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter.

Silver futures for September delivery rose 7.2 cents, or 0.4 percent, to $18.362 an ounce on the Comex.

Platinum futures for October delivery advanced $13.10, or 0.9 percent, to $1,533.70 an ounce on the New York Mercantile Exchange. Palladium futures for September delivery gained $1.40, or 0.3 percent, to $467.20 an ounce, also on the Nymex.

Gold in N.Y. Retreats After Gaining the Most in Three Weeks

July 14 (Bloomberg) -- Gold fell in New York on sales by some investors after prices gained the most in three weeks.

The metal yesterday climbed 1.2 percent, the most since mid-June. Investment in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, was unchanged yesterday. Gold has increased 11 percent this year.

“Gold is at the top end of its recent trading range and faces technical resistance,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “There is a bit of profit taking.”

Gold futures for August delivery fell $6.50, or 0.5 percent, to $1,207 an ounce on the Comex in New York.

The metal has failed to settle above $1,215 since June 30, an area of resistance, McGhee said. Earlier today, the price touched $1,218.20 before retreating.

A drop below $1,200 is an opportunity to buy, said Tom Pawlicki, an analyst at MF Global Holdings Ltd. in Chicago.

“The $1,200 level seems most favorable for entry,” Pawlicki said. “Low interest rates will continue to suggest that the cost of carry for gold is low, and will allow the metal to compete with Treasuries for investors that need a store of value.”

The Federal Reserve has kept the benchmark U.S. interest rate between zero percent and 0.25 percent since December 2008 to revive the economy.

Gold reached a record $1,266.50 on June 21 and also rallied to all-time highs in euros, U.K. sterling and Swiss francs last month amid Europe’s credit crisis.

Silver futures for September delivery rose 3.3 cents, or 0.2 percent, to $18.29 an ounce on the Comex.

Platinum futures for October delivery declined $14.80, or 1 percent, to $1,520.60 an ounce on the New York Mercantile Exchange.

Palladium futures for September delivery lost $3.35, or 0.7 percent, to $465.80 an ounce, also on Nymex.

Gold May Advance as Price Decline Spurs Buying, Survey Shows

July 9 (Bloomberg) -- Gold may advance on speculation that the metal’s drop to the lowest level in more than six weeks will prompt some investors to increase holdings, a survey found.

Thirteen of 20 traders, investors and analysts surveyed by Bloomberg, or 65 percent, said bullion will climb next week. Four forecast lower prices and three were neutral. Gold for delivery in August was down 1.5 percent for this week at $1,189.50 an ounce at 11 a.m. yesterday on the Comex in New York. It reached a record $1,266.50 on June 21.

Gold slipped on July 7 to $1,185 an ounce, the lowest price since May 24, and is heading for a third weekly decline. The metal gained this year as investors sought to shield their wealth from financial turbulence in Europe and on concern the global recovery may slow. The European Central Bank yesterday left its main interest rate unchanged at a record low 1 percent and the Bank of England kept its rate at 0.5 percent.

“Many traders and investors who have been on the sidelines in recent weeks see the present selloff as a buying opportunity,” analysts at Dublin-based broker GoldCore Ltd. said in a report. “Until savers and bondholders are compensated for considerable risk with higher yields, gold is likely to remain in a secular bull market.”

The red bars on the attached chart are derived by subtracting bearish forecasts from bullish estimates, with readings below zero signaling that most respondents expect a decline. The green line shows the gold price. The data shown are as of July 2.

The weekly gold survey that started six years ago has forecast prices accurately in 182 of 318 weeks, or 57 percent of the time.

Gold Falls as Dollar Gain Curbs Demand for Alternative Asset

June 23 (Bloomberg) -- Gold futures fell to a one-week low on speculation the dollar’s rally will erode demand for the precious metal as an alternative asset.

The greenback headed for the fourth straight gain against a basket of six major currencies. Before today, gold rose 13 percent this year, reaching a record $1,266.50 an ounce on June 21, on demand for a haven amid Europe’s sovereign-debt woes.

“Now that the euro has stabilized, the focus is back on the dollar-and-gold relationship,” said Frank Lesh, a trader at FuturePath Trading LLC in Chicago. “There’s just not enough fear and panic to send gold flying. There’s a little disappointment among recent longs that gold is just backing and filling, instead of advancing after making an all-time high.”

Gold futures for delivery in August dropped $6, or 0.5 percent, to $1,234.80 on the Comex in New York. Earlier, the metal touched $1,225.20, the lowest level for a most-active contract since June 15.

Gold has historically moved inversely to the dollar. This year, the metal climbed to records in euros, U.K. pound and Swiss francs.

Before today, the euro climbed 3.3 percent from a four-year low on June 7.

“It is becoming apparent that at least some of the aggressiveness among speculators as regards to pouncing upon the euro and piling further into bullion is on the decline,” said Jon Nadler, a senior analyst at Kitco Inc. in Montreal.

Silver futures for July delivery dropped 44.3 cents, or 2.3 percent, to $18.504 an ounce, the biggest drop since June 4.

Platinum futures for October delivery fell $27.40, or 1.7 percent, to $1,574.70 an ounce on the New York Mercantile Exchange, the largest decline in four weeks.

Palladium futures for September delivery tumbled $15.60, or 3.2 percent, to $474.35 an ounce.

Gold Trades Little Changed After Easing From Last Week’s Record

May 18 (Bloomberg) -- Gold traded little changed in Asia after falling yesterday as near-record prices prompted some investors to sell the precious metal.

Gold for immediate delivery rose 0.2 percent to $1,224.85 an ounce at 8:10 a.m. in Sydney. It fell 0.9 percent yesterday, after reaching a record $1,249.40 on May 14.

June futures fell 0.3 percent to $1,224.50 an ounce. The contract closed barely changed yesterday after reaching a record $1,249.70 on May 14.

Platinum for immediate delivery fell 0.3 percent to $1,665.5 an ounce, its fourth straight decline. Silver was little changed at $18.90 an ounce after falling 2.3 percent yesterday. Palladium was untraded after slumping 3.9 percent yesterday, its biggest one-day decline in almost two weeks.

Gold Trades Near Five-Month High on Europe, Currency Concern

May 4 (Bloomberg) -- Gold traded near a five-month high in Asia as sovereign debt risks in Europe and volatile currencies led investors to the safety of bullion.

Gold for immediate delivery rose $1.13 to $1,183.30 an ounce at 8:18 a.m. in Sydney. The metal reached a peak of $1,187.80 yesterday, the highest intraday level since Dec. 4, before falling as the dollar jumped on a report showing stronger-than-expected manufacturing growth in the U.S.

Futures for June delivery advanced 60 cents to $1,183.90 an ounce on the Comex in New York. The contract rose 0.2 percent to settle at $1,183.30 yesterday.

Platinum for immediate delivery added $2.50 to $1,725.50 an ounce after declining as much as 1 percent yesterday after the dollar rose and April sales by carmakers including General Motors Co. and Ford Motor Co. missed analysts’ estimates.

Silver was little changed at $18.81 an ounce after rising as much as 1.2 percent to $18.865 an ounce yesterday, its highest since Jan. 11. Palladium rose 0.7 percent to $545 an ounce after falling 1.3 percent yesterday.

Gold Gains as Euro Drop Drives Demand for Currency Alternatives

April 6 (Bloomberg) -- Gold climbed to a one-month high, erasing a decline, as Greek debt concerns spurred investors to buy precious metals as an alternative to holding currency. Platinum touched a 20-month high before giving up the gain.

Gold priced in euros is up 11 percent this year, reaching a record today as the 16-nation currency dropped against the dollar on concern the European Union’s financial-rescue plan for Greece may fail. Greek 10-year bond yields climbed above 7 percent for the first time since January.

“What’s happening overseas is helping gold right now,” said Marty McNeill, a trader at R.F. Lafferty Inc. in New York. “People will go to gold as a safe haven. Gold priced in euros has gained much more than gold on a U.S. dollar basis.”

Gold futures for June delivery rose $2.20, or 0.2 percent, to $1,136 an ounce on the Comex in New York. Earlier, the most- active contract climbed to $1,139.60, the highest price since March 5.

Bullion futures rallied 24 percent last year, touching a record $1,227.50 on Dec. 3, as U.S. interest rates held near zero sent the dollar down 4.2 percent against a basket of six major currencies. The dollar has gained 4.7 percent this year while gold is up 3.6 percent.

“The dollar is the least-bad currency,” said Mark O’Byrne, the executive director of Goldcore Ltd. in Dublin. “The demand for gold has to with demand for a safe haven and an inflation hedge.”

The Reuters/Jefferies CRB Index of 19 commodities touched a 10-week high before erasing gains.

Global Recovery

“It appears the global recovery is on,” said Kevin Davitt, a senior market analyst at LaSalle Futures Group in Chicago. “You’re seeing considerable interest in commodities across the board. The question now is when does inflation become a concern.”

Platinum futures for July delivery fell $5.30, or 0.3 percent, to $1,704.50 an ounce on the New York Mercantile Exchange. Earlier, the metal touched $1,713.20, the highest price for a most-active contract since Aug. 1, 2008.

Silver futures for May delivery slipped 18.7 cents, or 1 percent, to $17.931 an ounce on the Comex. The metal gained 4.5 percent in the previous three sessions.

June palladium futures advanced 50 cents, or 0.1 percent, to $508.50 an ounce on the Nymex. Before today, the metal surged 8 percent since March 30, touching a two-year high of $511.75 yesterday.

Gold Rises Most in Week on Haven-Asset Demand, Korea Concern

March 26 (Bloomberg) -- Gold prices rose the most in a week on speculation that demand will increase amid escalating debt concerns in Europe and after a South Korean naval vessel sank near the border with North Korea.

“The bailout of Greece accomplished by the Europeans is only temporary,” said Dennis Gartman, an economist and the Gartman Letter’s editor. “The future of the euro remains dreadfully weak. That means those central banks who had been buying euros as a reservable asset, but are still fearful of owning more dollars, have no choice but to move toward gold.”

The euro gained as much as 1.1 percent against the dollar. European leaders endorsed a Franco-German proposal to help Greece with a mix of International Monetary Fund and bilateral loans. Gold priced in euros reached a record on March 5.

Gold futures for June delivery climbed $11.30, or 1 percent, to $1,105.40 an ounce on the Comex in New York, the biggest gain for a most-active contract since March 16. The price fell 0.2 percent this week.

The euro rebounded from a 10-month low after European leaders put the IMF on standby to help debt-stricken Greece and sought to reduce concerns that divisions on the issue would escalate the nation’s fiscal crisis.

The Greek plan “will no doubt give risk sentiment a short- term boost and is partially behind the gains with gold,” James Moore, an analyst at TheBullionDesk.com in London, said in a report. Concern that government debt may expand “will continue to prompt diversification away from fiat currencies and toward more tangible assets, particularly precious metals,” he said.

Korea Concern

Investors also bought gold after the Korean incident. A South Korean patrol vessel sank off the island of Baengnyeong in the Yellow Sea. The cause wasn’t immediately clear. The sinking prompted President Lee Myung Bak to meet with security officials in Seoul.

“We had an oversold condition and when the Korea news hit the desks, gold took off,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago.

A rebound by the dollar may limit the metal’s gains, analysts said.

“Gold does not look attractive,” said Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois. “The dollar is the cream of the currencies. The major problem for the dollar in the past few years has been the strength of the euro, and that is no longer the case.”

Gold rallied 24 percent last year as the euro gained 2.4 percent against the dollar.

Also in New York, silver futures for May delivery rose 16.5 cents, or 1 percent, to $16.906 an ounce on the Comex, down 0.7 percent for the week.

Platinum futures for July delivery fell $11.10, or 0.7 percent, to $1,600.70 an ounce on the New York Mercantile Exchange, extending this week’s decline to 0.5 percent. Palladium for June delivery gained $2.70, or 0.6 percent, to $455.30 an ounce on the Nymex, down 2.8 percent this week.

Gold Prices Rise in N.Y. on Demand for Alternative to Currency

March 15 (Bloomberg) -- Gold rose in New York, rebounding from the biggest weekly loss in more than a month, on speculation that sovereign-debt concerns will boost demand for the metal as an alternative to holding currency.

The euro fell as much as 0.9 percent against the dollar after the finance ministers of Germany and France ruled out a decision today on helping Greece manage its fiscal difficulties. Moody’s Investors Service said the U.S. and the U.K. have moved closer to losing their Aaa credit ratings.

“Gold is a good spot to be parking your money for the time being,’ said Frank Lesh, a trader at FuturePath Trading LLC in Chicago. “Gold has that flight-to-safety aspect to it. It’s going to hold its value.”

Gold futures for April delivery rose $3.70, or 0.3 percent, to $1,105.40 an ounce on the Comex in New York. The metal fell 3 percent last week, the most since Jan. 22.

Greece is seeking to narrow a budget deficit that is the widest gap among the 16 nations that share the euro. Gold priced in euros reached a record on March 5.

Under a so-called baseline scenario, the U.S. will spend more on debt service as a percentage of revenue this year than any top-rated country except the U.K., Moody’s said today in a report. The U.S. will be the biggest spender through 2013.

“Jitters lent fresh support to the precious metals,” said Jon Nadler, a Kitco Inc. analyst in Montreal.

China Rate Concern

Gold’s gains may be limited on concern that China will raise its benchmark one-year lending rate, curbing demand for raw materials. The Reuters/Jefferies CRB Index of 19 commodities fell as much as 1.3 percent after a 1.3 percent loss last week.

“Most countries are reluctant to raise interest rates at this point,” said Lesh of FuturePath. “They don’t know if their economies can handle it. But China has been tightening and they can move quickly.” The Asian nation’s central bank increased reserve requirements for lenders last month.

In other markets, silver futures for May delivery advanced 6 cents, or 0.4 percent, to $17.108 an ounce on the Comex. Platinum for April delivery rose $7.40, or 0.5 percent, to $1,615.80 an ounce on the New York Mercantile Exchange. June palladium futures slid $2.50, or 0.5 percent, to $460.65 an ounce on the Nymex.

Gold Falls on Speculation China May Raise Rates, Damp Demand

March 12 (Bloomberg) -- Gold in New York fell to the biggest weekly loss in seven weeks on speculation that China will raise interest rates to control inflation, reducing demand for raw materials including precious metals.

Consumer prices in China rose 2.7 percent in February, the most in 16 months, the government said yesterday. The Reuters/Jefferies CRB Index of 19 commodities slumped today, led by energy contracts, and has dropped every day this week. Accelerating growth in China last year and low interest rates helped send gold to a record $1,227.50 an ounce on Dec. 3.

“There’s a lot of chatter that you’ll have rate hikes out of China,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “If China raises rates, that’s going to damp demand for raw materials. Gold and oil are going to be sensitive to this.”

Gold futures for April delivery fell $6.50, or 0.6 percent, to $1,101.70 an ounce on the Comex in New York, leaving the most-active contract down 3 percent this week, the biggest weekly drop since Jan. 22.

Gold may extend declines should the U.S. economic recovery spur the Federal Reserve to raise interest rates before the European Central Bank, boosting the value of the dollar.

Sales by U.S. retailers climbed unexpectedly in February from January, the Commerce Department said today. Last year, gold rallied 24 percent as the Fed kept its benchmark interest rate near zero to revive the economy. The ECB’s main rate is at 1 percent.

Euro Weakness

Before today, the euro dropped 4.5 percent this year against the dollar after gaining 2.5 percent in 2009. This year’s slump is partly because investors are concerned that the effect of Greece’s budget difficulties on its debt may spread to other European Union countries.

“The dollar looks to get stronger,” said Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois. “We’ve seen the dollar has not fallen out of bed, while the Greek problem is serious and will weaken the euro.”

Investors generally purchase the metal, priced in dollars, to hedge against declines in the U.S. currency.

In other markets, silver futures for May delivery fell 11.2 cents, or 0.7 percent, to $17.048 an ounce on the Comex, leaving the most-active contract down 1.9 percent for the week.

Platinum for April delivery fell $4.30, or 0.3 percent, to $1,608.40 an ounce on the New York Mercantile Exchange. The metal climbed 1.9 percent this week, the second straight gain. Palladium for June delivery rose $2.15, or 0.5 percent, to $463.15 an ounce on the Nymex. The metal slid 2.8 percent this week, the second decline in three weeks.

Gold Futures Fall Most in a Week as Dollar Climbs Against Euro

March 4 (Bloomberg) -- Gold futures fell the most in more than a week as the advancing dollar reduced demand for the metal as an alternative investment.

The greenback rose as much as 1.1 percent against the euro as the European Central Bank extended some economic-stimulus measures and left its benchmark interest rate unchanged at 1 percent. Gold rose 24 percent last year as the euro gained 2.5 percent against the U.S. currency.

“The dollar is only going to get stronger and stronger,” said Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois. “Everybody is beginning to realize that the ECB is cooked because the Greek problem is not going to go away. Investors will go back to the dollar, and gold goes lower.”

Gold futures for April delivery slid $10.20, or 0.9 percent, to $1,133.10 an ounce on the New York Mercantile Exchange’s Comex unit, the biggest drop for a most-active contract since Feb. 23.

The euro also fell after German Chancellor Angela Merkel said a meeting tomorrow with Greek Prime Minister George Papandreou won’t focus on “aid commitments.” Demonstrators occupied the Greek finance ministry today to protest planned budget cuts.

“If the dollar continues to strengthen, we might see a halt in gold,” said Sagiv Perez, a senior dealer at Finotec Trading U.K. in London.

Also in New York, silver futures for May delivery fell 15.3 cents, or 0.9 percent, to $17.176 an ounce. Platinum futures for April delivery gained 10 cents to $1,583.60 an ounce.

Palladium rose, capping the longest rally since October. Futures for June delivery climbed $12.70, or 2.8 percent, to $463.20 an ounce, the sixth straight gain.

Gold Rises to Six-Week High on Demand for Currency Alternative

March 3 (Bloomberg) -- Gold climbed to a six-week high in New York on speculation that escalating sovereign-debt concerns will boost demand for the metal as an alternative to currencies.

Greek Prime Minister George Papandreou announced an additional 4.8 billion euros ($6.6 billion) of deficit cuts as he tries to convince European allies and investors that he can tame the region’s biggest budget gap. Gold priced in euros climbed to a record yesterday.

“Gold is going to become the currency of choice as people lose faith in fiat currencies,” said Matt Zeman, a trader at LaSalle Futures Group in Chicago. “These countries continue to write checks that they can’t cash.”

Gold futures for April delivery rose $5.90, or 0.5 percent, to $1,143.30 an ounce on the Comex division of the New York Mercantile Exchange. Earlier, the most-active contract touched $1,145.80, the highest price since Jan. 15.

“There are hopes that the Greek deficit cuts will stem the tide of the declining euro,” GoldCore Ltd., a broker in Dublin, said in a report. “Concerns that the austerity measures being taken in Greece may soon have to be undertaken in other European economies and in the U.K. should lead to continuing safe-haven demand for gold.”

Gold has climbed 4.3 percent this year, while the euro is down 4.2 percent against the dollar. The metal jumped 24 percent in 2009 as record-low U.S. interest rates and government spending weighed on the dollar and countries including India and China boosted bullion reserves.

Russian Central Bank

Russia’s central bank wants to increase the proportion of its international reserves held in gold, First Deputy Chairman Alexei Ulyukayev said in an interview published in Izvestia today. His comments were confirmed by a Bank Rossii official. The bank added 100,000 ounces to its reserves in January.

“We expect stronger willingness by emerging-market central banks to buy and hold more strategic gold reserves for diversification purposes, due to lost confidence in the dollar,” Bayram Dincer, a commodity analyst at LGT Capital Management in Pfaeffikon, Switzerland, said in a report. Gold may average $1,150 this year as the metal enters a “second golden decade,” he said.

Also in New York, silver futures for May delivery rose 26.5 cents, or 1.6 percent, to $17.329 an ounce. Platinum for April delivery gained $7.50, or 0.5 percent, to $1,583.50 an ounce. Palladium for June delivery advanced $5.65, or 1.3 percent, to $450.50 an ounce.

Gold Dips for the First Day in Five as Euro Gains on Greek Plan

March 3 (Bloomberg) -- Gold dropped for the first time in five days on speculation that Greece will unveil additional deficit cuts today, stemming a slide in the euro and cutting demand for the precious metal as a hedge.

Bullion for immediate delivery fell as much as 0.2 percent to $1,132.80 an ounce, before trading at $1,132.95 at 10:01 a.m. in Singapore. Gold climbed to a six-week high of $1,137.72 yesterday as the euro and pound fell on concerns that the economic recovery in Europe may falter.

The euro rose from a nine-month low today, with Greece set to announce an extra 4.8 billion euros ($6.5 billion) of cuts, according to a person familiar with the plan. Hiroichi Nishi, an equities manager at Nikko Cordial Securities Inc. in Tokyo, said the region’s biggest budget gap “is moving toward a resolution.”

“Gold has been supported by the currency markets as investors seek a safe haven,” said Li Ning, an analyst at China International Futures (Shanghai) Co. “When investors are more confident about economic growth, risk appetite returns and gold loses its luster.”

Gold may also fall today alongside other metals as investors sell copper on speculation that a recent rally isn’t justified. The industrial metal dropped for the first day in four after Chile, the largest producer, said it returned to full output yesterday after an earthquake knocked out power at mines.

Among other precious metals for immediate delivery, silver was little changed at $16.8925 an ounce, platinum gained 0.2 percent to $1,575.25 an ounce, and palladium added 0.7 percent to $444.25 an ounce.

Gold Steady in N.Y. as Dollar Gains Against Euro; Silver Drops

March 1 (Bloomberg) -- Gold was little changed in New York, halting a two-session rally, as the dollar climbed against the euro, eroding demand for the metal as an alternative investment. Silver fell from the highest price in almost a month.

Greece must do more to cut its budget deficit, said Olli Rehn, the European Union’s monetary affairs commissioner, after meeting with Greek Finance Minister George Papaconstantinou. Concern about Greece’s debt situation fueled last month’s dollar rally. The U.S. currency climbed as much as 1.3 percent against the euro today. Gold often falls when the greenback gains.

“We expect the euro and broad risk sentiment to provide further direction for gold,” James Moore, an analyst at TheBullionDesk.com in London, said in a report.

Gold futures for April delivery slipped 60 cents to $1,118.30 an ounce on the New York Mercantile Exchange’s Comex unit. In London, gold for immediate delivery was unchanged at $1,117.60 at 9:07 p.m. local time.

Earlier gold rose as much as 0.4 percent in New York as industrial metals including copper climbed. Copper jumped as much as 6.2 percent to a seven-week high on concern that the 8.8-magnitude earthquake in Chile, the world’s biggest producer, on Feb. 27 may disrupt supplies.

“Base metals rallied strongly due to the earthquake in Chile and this is one factor that has been pushing other commodity prices up,” said Peter Fertig, the owner of Quantitative Commodity Research Ltd. in Hainburg, Germany.

Silver futures for May delivery fell 5.2 cents, or 0.3 percent to $16.469 an ounce in New York. Earlier, the most- active contract reached $16.77, the highest price since Feb. 3. Industrial-metal mines produce more than two-thirds of silver output, as a byproduct, according to Deutsche Bank AG.

“There is a good correlation between silver and copper,” Fertig said. “If there’s negative output for copper, it affects silver.”

Also on the Nymex, platinum futures for April delivery gained $4.10, or 0.3 percent, to $1,544 an ounce. June palladium futures advanced $4.25, or 1 percent, to $438 an ounce.

Gold May Extend Biggest Rally in 3 Months as Dollar Declines

Feb. 2 (Bloomberg) -- Gold may extend its biggest rally in three months as the dollar’s advance stalled, bolstering demand for the metal as an alternative investment.

Gold for immediate delivery was little changed at $1,104.38 an ounce at 9:09 a.m. in Singapore. The metal rallied 2.3 percent yesterday, the most since Nov. 3. The greenback fell from a six-month high against a basket of six currencies yesterday, shedding as much as 0.4 percent.

“The rally is luring some buyers to lock in gains, while some are betting on a further rally given that gold’s past the key $1,085 support level,” said Yu Kyung Kyu, a trader with Eugene Investment & Futures Co. in Seoul. “Should the dollar’s rally stall here, gold has further to rise.”

Bullion, which typically moves inversely to the dollar, declined for a second month in January as the dollar rallied 2 percent against a basket of six major currencies. The metal reached $1,226.56 on Dec. 3, the highest price ever.

President Barack Obama yesterday 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.

“Despite the strength of the U.S. dollar, the gold price is holding up relatively well,” Eugen Weinberg, a senior analyst with Commerzbank AG wrote in a note. “Gold should also benefit from the outlook that the next fiscal year’s public household deficit in the U.S. will amount to $1.3 trillion, close to its record level of $1.6 trillion last year.”

Silver decreased 0.1 percent to $16.655 an ounce, platinum fell 0.1 percent to $1,549.25 an ounce and palladium was up 0.2 percent at $432.75 an ounce.

Gold Declines in New York on Stronger Dollar, Falling Equities

Jan. 27 (Bloomberg) -- Gold fell in New York for the first time in three sessions as a rally by the dollar curbed the metal’s appeal as an alternative asset and some investors sold bullion to cover losses in equity markets.

The dollar rose as much as 0.3 percent against a basket of six major currencies while European and Asian stocks declined on mounting concern that China and the U.S. will accelerate plans to unwind stimulus measures as their economies rebound. Before today, gold rose 21 percent in the past year as the dollar tumbled 7.4 percent.

“Gold is on the defensive because of the dollar,” said Marty McNeill, a trader at R.F. Lafferty Inc. in New York.

Gold futures for April delivery dropped $13.80, or 1.3 percent, to $1,085.70 an ounce on the Comex division of the New York Mercantile Exchange.

The Dow Jones Stoxx 600 Index of European shares closed at the lowest level in more than a month. It has slid 2.6 percent this year as the U.S. called for limits on risk-taking by banks and China moved to restrict lending and cool economic growth.

“If stocks continue to fall, people may have to liquidate their gold positions,” said Bernard Sin, the head of currency and metals trading at bullion refiner MKS Finance SA in Geneva.

Gold gained for a ninth year in 2009 as the Federal Reserve maintained interest rates near zero percent to revive growth, driving the dollar lower. The Fed will keep its key overnight rate unchanged today as officials conclude a regular monetary- policy meeting, according to all 93 economists surveyed by Bloomberg.

Gold will rebound, approaching $1,300 in the next six months, on increased investment demand, Investec Global Gold Fund said in a report. The “long-term floor” will be $1,000, Investec said.

Silver futures for March delivery fell 42 cents, or 2.5 percent, to $16.44 an ounce. Platinum futures for April delivery declined $39.20, or 2.6 percent, to $1,492.10 an ounce. Palladium for March delivery slid $10.80, or 2.5 percent, to $416.75 an ounce.

Gold Rises in New York on Speculation Dollar Rally Will Stall

Jan. 26 (Bloomberg) -- Gold futures in New York rose on speculation that the dollar’s rally will stall, boosting the appeal of the precious metal as an alternative investment.

The dollar rose as much as 0.6 percent against a basket of six major currencies before retreating. Gold is up 21 percent in the past year as the dollar fell 7.4 percent.

“As long as the dollar doesn’t strengthen anymore from here, gold is a buy,” said Frank McGhee, the head dealer at Integrated Brokerage Services in Chicago.

Gold futures for April delivery rose $2.70, or 0.3 percent, to $1,099.50 an ounce on the New York Mercantile Exchange’s Comex unit. Earlier, the price dropped to $1,086.50.

Gold also gained on speculation the precious metal will resume its long-term rally, after the most-active futures failed to drop below its 100-day moving average of about $1,085, which some analysts said may create buying interest.

“The bottom line is that gold bounced from a technical breakout point, so you’ve got buyers coming in,” said Tom Schweer, a senior market strategist at LaSalle Futures Group in Chicago.

The price hasn’t traded below its 100-day moving average since mid-July, and gold has found support near that level since at least the end of 2008, data show. The metal rose for the ninth straight year in 2009, surging 24 percent and touching a record $1,227.50 on Dec. 3.

Silver, Platinum Fall

Silver and platinum, precious metals that have wider industrial uses than gold, fell on speculation China’s moves to curb lending will slow global growth and dampen demand.

China is starting to take steps to cool the economy, which grew in the fourth quarter at the fastest pace since 2007. The central bank ordered lenders on Jan. 12 to raise the ratio of deposits they hold in reserve, limiting the amount of cash available for loans.

“China is tightening things up and slowing things down,” said McGhee. “All the China talk has brought the metals down.”

Silver for March delivery fell 28.5 cents, or 1.7 percent, to $16.86 an ounce on the Comex. Platinum futures for April delivery slipped $14.80, or 1 percent, to $1,531.30 an ounce on the Nymex. Palladium futures for March delivery lost $12.45, or 2.8 percent, to $427.55 an ounce.

Gold Rebounds on Bets Dollar to Retreat, Stoke Demand for Metal

Jan. 25 (Bloomberg) -- Gold prices rebounded on speculation that the dollar will retreat, boosting the appeal of the precious metal as an alternative investment.

The greenback has been little changed against a basket of six major currencies since reaching a five-month high on Jan. 21. Gold is up 21 percent in the past year, while the dollar dropped 8.7 percent.

“The dollar is giving traders a green light to buy gold,” said Frank Lesh, a trader at FuturePath Trading LLC in Chicago. “The market is going to be range-bound until we get more clarity on interest rates and the direction of the dollar.”

Gold futures for February delivery rose $6, or 0.6 percent, to $1,095.70 an ounce on the Comex division of the New York Mercantile Exchange. On Jan. 22, the metal touched $1,081.90, the lowest level since Dec. 23.

In 2009, gold rallied for a ninth straight year as the Federal Reserve kept interest rates close to zero percent to revive growth, driving the dollar lower.

Last week, gold dropped 3.6 percent, the most in six weeks. The slide may encourage some investors to buy, especially in China, James Moore, an analyst at London-based TheBullionDesk.com, said in a report.

“With rising physical demand ahead of the Lunar New Year, dips are likely to be viewed as good bargain-hunting opportunities,” Moore said. China’s weeklong Lunar New Year holidays start on Feb. 14.

Silver futures for March delivery rose 21.3 cents, or 1.3 percent, to $17.145 an ounce on the Comex. Platinum futures for April delivery rose $1.60, or 0.1 percent, to $1,546.10 an ounce in New York. Palladium futures for March delivery fell 10 cents to $440 an ounce.