U.S. Gold Above $980 as Weak Dollar Stirs Fund Inflows

Source:

". . .resurgent risk appetite pummeled the dollar, attracting investment inflows into the bullion market."

U.S. gold futures rose above $980 an ounce on Friday to a fresh three-month high as resurgent risk appetite pummeled the dollar, attracting investment inflows into the bullion market.

August GCQ9 up $16.40, or 1.7%, at $979.60 an ounce at 11:05 a.m. EDT (1505 GMT) on the COMEX division of the New York Mercantile Exchange.

Ranged from $960.40 to $982, which marked the highest price since Feb. 25.

Buying in gold as a hedge against the falling dollar increased after the greenback fell to five-month lows against a basket of currencies .DXY and the euro rose above $1.41.

Evidence of an easing global recession drove investors to snap up higher-yielding currencies and riskier assets, sending the U.S. currency sharply lower.

Gold rally supported by the combination of a weaker dollar and a recovery in broad commodities prices - James Steel, chief commodities analyst at HSBC.

Substantial investment inflows into the commodity sector, most prominently in oil, also helped gold - Steel.

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