 "Gold rises on dollar drop, oil rally")
Gold futures rose after the dollar's drop and crude oil's rally boosted the appeal of the metal as a store of value.
The greenback fell as much as 0.6 per cent against a basket of 10 currencies. Oil in New York topped $60 a barrel, and gasoline futures rose. Gold jumped as much as 1.1 per cent before paring gains.
The metal has climbed 4.3 per cent from this year's low of $1,141.60 an ounce on March 17. The dollar fell 2.9 per cent in April, snapping a record nine-month rally. The greenback dropped on Tuesday as bond yields outside the US advanced relative to Treasuries. Oil has jumped more than 40 per cent from the 2015 low.
"The weaker dollar brought some flows into the gold market," Mike Dragosits, a senior commodity strategist at TD Securities in Toronto, said in a telephone interview. "There are expectations that inflation increasing in the future with higher oil prices might catch people off guard."
Gold futures for June delivery rose 0.6 per cent to $1,190.60 at 10:09 am on the Comex in New York. Volume in all contracts was 12 per cent above the 100-day average for this time, according to data compiled by Bloomberg.
On Monday, holdings in exchange-traded products backed by gold fell for the fourth straight session to the lowest since January 15, according to Bloomberg data.
The greenback fell as much as 0.6 per cent against a basket of 10 currencies. Oil in New York topped $60 a barrel, and gasoline futures rose. Gold jumped as much as 1.1 per cent before paring gains.
The metal has climbed 4.3 per cent from this year's low of $1,141.60 an ounce on March 17. The dollar fell 2.9 per cent in April, snapping a record nine-month rally. The greenback dropped on Tuesday as bond yields outside the US advanced relative to Treasuries. Oil has jumped more than 40 per cent from the 2015 low.
"The weaker dollar brought some flows into the gold market," Mike Dragosits, a senior commodity strategist at TD Securities in Toronto, said in a telephone interview. "There are expectations that inflation increasing in the future with higher oil prices might catch people off guard."
Gold futures for June delivery rose 0.6 per cent to $1,190.60 at 10:09 am on the Comex in New York. Volume in all contracts was 12 per cent above the 100-day average for this time, according to data compiled by Bloomberg.
On Monday, holdings in exchange-traded products backed by gold fell for the fourth straight session to the lowest since January 15, according to Bloomberg data.
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