Gold May Climb on Demand for Alternative Investments to Dollar

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Bullion has climbed 2.6 percent this year, while the dollar last week fell to a three-month low against the euro.

Gold may advance for a fifth consecutive day in London on speculation the dollar will resume its decline against the euro, increasing demand for the precious metal as an alternative investment.

Bullion has climbed 2.6 percent this year, while the dollar last week fell to a three-month low against the euro. The Federal Reserve is set to decide on interest rates tomorrow. Immediately after the Fed's meeting in January, rates were left unchanged and gold climbed $5.90, or 0.9 percent.

"People are expecting no change in rates, which means it will be bullish for gold," said Bernard Sin, chief trader at gold refiner MKS Finance SA in Geneva.

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