Dec. 23, 2004
Bloomberg
Gold futures in New York rose after the U.S. dollar fell to its lowest in eight days against the euro, enhancing the precious metal's appeal as an alternative to U.S. securities.
The U.S. dollar is heading for a third annual loss on concern demand for U.S. assets will wane. U.S. Treasury Secretary John Snow Dec. 3 said he has a ``deep respect for the way markets perform,'' suggesting he would not accede to calls from European and Asian countries for the U.S. to halt its currency's drop.
``The euro is still a big influence'' on gold prices, Gordon Cheung, director of precious metals at Mitsui Bussan Hong Kong, said in a telephone interview. With Japan closed for a public holiday and the approach of year-end holidays in major financial markets, gold is ``automatically adjusting to the euro,'' he said.
Gold for February delivery rose as much as $1.30 an ounce, or 0.3 percent, to $442.70 an ounce on the Comex division of the New York Mercantile Exchange. At 1:36 p.m. Singapore time, it traded at $442.50 an ounce, up $1.10 or 0.3 percent.
Gold futures in New York reached a 16-year high of $458.70 an ounce Dec. 2 as the U.S. currency headed to a record low against the euro.
The dollar traded at $1.3438 against the euro at 1:37 p.m. Singapore time, from $1.339 late yesterday in New York, according to EBS, an electronic currency dealing system. The U.S. currency, which has fallen 11 percent in the past four months, fell to $1.3439 in Asia, the lowest since Dec. 15.
Gold for immediate delivery rose 93 cents, or 0.2 percent, to $441.14 an ounce at 1:15 p.m. Singapore time, compared with $440.21 at 1.30 p.m. yesterday in New York.
In India, the world's biggest gold consumer, prices for February delivery rose 8 rupees or 0.12 percent to 6,360 rupees per 10 grams, or 19,779 rupees ($452) per ounce, at 10:55 a.m. on the Multi Commodity Exchange of India Ltd. in Mumbai as the rupee gained 0.2 percent against the dollar. Yesterday, gold closed at 6,352 rupees per 10 grams.
In Shanghai, the benchmark 99.95 percent gold contract fell 0.29 yuan, or 0.2 percent, to 117.34 yuan a gram ($14.17) at 1:20 p.m. Singapore time, according to the Shanghai Gold Exchange Web site. The prices are delayed by an hour.
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