Gold Rises


Gold gained in Asia, after tumbling the most in more than three weeks yesterday, as investors sought a haven on concern the dollar may decline and inflation increase.

Bullion has gained 9.3 percent in the past month as the dollar fell and financial market instability sent the S&P 500 Index 8 percent lower during the same period. The dollar was little changed against the euro before a report later today that may show U.S. housing starts declined to a 17-year low.

Bullion for immediate delivery rose 0.4 percent to $964.38 an ounce at 10:45 a.m. in Singapore after yesterday falling 1.8 percent, the biggest decline since June 23. Silver advanced 0.5 percent to $18.85 an ounce.

Gold has dropped 2.3 percent from a four-month high of $988.02 an ounce on July 15 as crude oil retreated from a record $146.73 a barrel. It last traded at $134.88 today.

The dollar was at $1.5844 against the euro at 10:45 a.m. in Singapore, having touched an all-time low of $1.6038 July 15.

Bullion holdings in exchange-traded funds jumped a record 1.48 million ounces on July 11, the largest one-day increase since November, 2004, when the first listing of such funds started, according to John Reade, analyst at UBS Ltd.

Gold for August delivery gained 0.2 percent to $964.70 an ounce in after-hours electronic trading on Comex at 10:45 a.m. in Hong Kong. Gold for December delivery traded in Shanghai fell 0.3 percent to 211.06 yuan a gram ($963 an ounce) at the same time.

Gold for June 2009 delivery was little changed at 3,281 yen a yen a gram ($974 an ounce) on the Tokyo Commodity Exchange at the 11 a.m. local time break.


TradingEconomics.com, Bloomberg
7/16/2008 8:41:08 PM