Gold rises to US$1,643.8 with weaker dollar
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E-mail Xinhua, April 25, 2012
Gold futures on the COMEX division of the New York Mercantile Exchange regained some strength Tuesday, as negative data for the U.S. housing market led to a weaker U.S. dollar and thus, lent support to the precious metal.
The most active gold contract for June delivery rose 11.2 dollars, or 0.7 percent, to settle at 1,643.8 dollars per ounce.
Market analysts said that gold reversed Monday's losses and settled at its highest level in a week Tuesday, helped by both a weaker dollar and positivity in the equities and energies markets.
According to the S&P/Case-Shiller home price index, U.S. home sales decreased 0.8 percent in February, and were down 3.5 percent since the same time last year. The index is currently at its lowest level since October 2002.
Adding to the disappointing housing data, the Conference Board consumer-confidence index was also reported to have fallen in April, from 69.5 to 69.2.
The release of the weaker U.S. macroeconomic data sent the dollar falling, a development that in turn lent support to gold. The dollar index, which measures the value of dollar against six other currencies, traded around 79.244 on Tuesday, down 0.22 percent.
Crude oil and the U.S. stock market also saw positive movement Tuesday, the Dow Jones Industrial Average up 0.5 percent in afternoon trading as traders' Monday worries regarding political issues in the Eurozone seemed somewhat assuaged.
Silver for May delivery rose 21.5 cents, or 0.7 percent, to close at 30.746 dollars per ounce. Platinum for July delivery fell 8.2 dollars, or 0.5 percent, to close at 1,548.1 dollars per ounce.
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