Gold, Other Metals Rise as Dollar Weakens
Source: Associated Press, Sara Lepro (7/13/09)
". . .investors snapped up riskier assets hoping that earnings reports will show an improving economy."
A weaker dollar also helped push commodity prices higher.
The dollar declined against other major currencies, including the euro and the British pound, as investors found increased appetite for risk. Commodities, which are priced in U.S. dollars, tend to benefit when the greenback falls because it makes them cheaper for foreign investors.
After prices climbed this spring on hopes for a quick end to the recession, commodities have seen their appeal falter over the past several weeks amid fading hopes for a strong recovery.
"It's not all that surprising to see the metals come back a little bit," said Stephen Platt, an analyst with Archer Financial Services. "It was a day of rest and probably position-squaring going into" earnings season, he said.
Gold for August delivery gained $10 to settle at $922.50 an ounce on the New York Mercantile Exchange.
Other precious metals also rose. September silver was up 14 cents to $12.7850 an ounce, while July platinum added $9.70 to $1,111.10 an ounce.
Among base metals, September copper futures rose 1.15 cents to $2.2230 a pound. Aluminum prices slipped.