Jan. 19 （Bloomberg） -- Gold gained for the second straight day as the dollar declined, boosting the metal’s appeal as an alternative investment. Platinum jumped to the highest since 2008.
The greenback fell to an eight-week low against a basket of major currencies on speculation that muted recoveries in U.S. job and real-estate markets will deter the Federal Reserve from raising borrowing costs. Gold rose 30 percent last year as the Fed kept its benchmark interest rate at a record low.
“Gold is higher with renewed dollar weakness,” said Matthew Zeman, a metal trader at LaSalle Futures Group in Chicago. “Labor and housing remain the thorn in the side of the domestic recovery. The Fed may not be raising rates based on the data we’re seeing.”
Gold futures for February delivery gained $2 to settle at $1,370.20 an ounce at 1:43 p.m. on the Comex in New York. The metal climbed 0.6 percent yesterday after dropping 4.3 percent in the previous two weeks.
U.S. housing starts fell 4.3 percent to a 529,000 annual rate last month, the lowest since October 2009, Commerce Department data showed today. The number of people continuing to receive jobless benefits probably increased to 3.99 million in the week ended Jan. 8, from 3.88 million a week earlier, a Bloomberg survey showed before tomorrow’s government report.
China’s Outlook
Platinum and palladium rallied on speculation that demand will rise for the metals used in pollution-control devices in cars. The China Association of Automobile Manufacturers has forecast that vehicle sales will increase 10 percent to 15 percent this year after jumping 32 percent in 2010.
Platinum futures for April delivery gained $9.80, or 0.5 percent, to $1,838.10 an ounce on the New York Mercantile Exchange. Earlier, the price reached $1,851.10, the highest since July 22, 2008.
Palladium futures for March delivery rose $9.30, or 1.1 percent, to $819.75 an ounce. Earlier, the price reached $829.85, extending a rally to the highest since March 2001.
Silver futures for March delivery dropped 11.1 cents, or 0.4 percent, to $28.801 an ounce on the Comex.
豫公网安备41010502003434号