Gold Futures Gain as Dollar Weakens, Price of Oil Climbs

Source:

"Gold futures climbed to $920 an ounce on Tuesday. . ."

Gold futures climbed to $920 an ounce on Tuesday as a weaker U.S. dollar and pricier crude oil fueled demand for the precious metal as investors sought to hedge bets against additional drops in the greenback and steeper inflation.

Gold for June delivery rose $6.50, or 0.7%, to $920.00 an ounce on the New York Mercantile Exchange.

The dollar index, which measures the greenback against a basket of half a dozen other major currencies, was recently flat.

In recent trade, crude-oil futures slipped 34 cents to $58.16 a barrel, after touching a six-month high of $60.08 a barrel earlier on.

"The entire commodities complex drew an early lift from news that China's infrastructure and industrial development expanded more than 30% in the first four months of the year versus the same period in 2008," said D.J. Beil, an equity strategist at Jefferies & Co.

"Copper has had a pretty significant rally given what you're seeing out of the stockpiling from emerging market economies. If I were China, I'd take every advantage in price weakness in commodities because I know demand is only going to increase," the analyst said.

Tuesday's trade had copper for July delivery gaining 0.1% to $2.0915 a pound on the Comex division of the NYME.

On Monday, gold fell 0.2% to 913.50 an ounce, a pause after having risen 3% last week.

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