Gold Edges Up as Dollar Reduces Gains
Source: MarketWatch, Moming Zhou (11/20/09)
"Gold for December delivery. . .rose 0.2% to $1,144.10 an ounce."
Both contracts are set to end the week higher by more than 2%.
In foreign-exchange trading, the U.S. dollar rose against most rival currencies, with the dollar index up 0.3% to 75.585.
The strength in the greenback had pushed down gold prices in morning trading. But as the dollar reduced its gains, gold prices edged higher.
The dollar remained relatively weak in this week's trading, giving a boost to gold, which has recorded a six-day winning streak.
"Inflation worries and recession worries bring gold buyers as low interest rates make it a good alternative to short-term fixed income," said George Gero, a precious-metals trader for RBC Capital Markets. "Longer-term holders are evident as open interest is increasing in far out trading months."
Holdings in SPDR Gold Shares, the biggest gold exchange-traded fund, stood at 1,117.49 metric tons as of Thursday, unchanged from a day ago.
Meanwhile, holdings in the iShares Silver Trust, the biggest silver ETF, rose to a new record high above 9,000 metric tons.
In other metals, December silver sank 0.4% to $18.385 an ounce, while December palladium dropped 1.3% to $365.15 an ounce and January platinum was nearly flat at $1,444.20 an ounce.
December copper rose 0.8% to $3.1055 a pound.