Gold Gains in London on Dollar Weakness


Gold advanced in London after the dollar fell to the lowest in more than two weeks against the euro, buoying demand for the precious metal as an alternative investment to the U.S. currency.

The dollar dropped after the Federal Reserve gave no indication yesterday that it would begin reversing the most aggressive series of rate cuts in two decades.

Gold for immediate delivery rose $7.45, or 0.8 percent, to $893.82 an ounce by 10:54 a.m. in London. Futures rose $13.20, or 1.5 percent, to $895.50 in after-hours electronic trading on the Comex division of the New York Mercantile Exchange.

Russia's oil funds may invest in gold, Moscow-based agency RIA Novosti said, citing a Finance Ministry official. Russia's Reserve Fund and the National Wellbeing Fund were worth a combined $161.9 billion on June 1.

Silver climbed 12.5 cents, or 0.7 percent, to 16.91 an ounce. Platinum gained $33.50, or 1.7 percent, to $2,046 and palladium advanced $1.50, or 0.3 percent, to $466.50.


TradingEconomics.com, Bloomberg
6/26/2008 6:42:38 AM