Gold may gain as dollar’s rally stalls

Gold traded near the highest in more than a week as the dollar halted a rally against major counterparts, potentially boosting investment demand for the metal as an alternative asset.

Gold for immediate delivery was little changed at $1,159.60 an ounce at 9:39 am in Singapore, after rising as much as 0.2 per cent to $1,160.10, the highest price since April 16. The metal advanced 1.4 per cent on April 23 as Greece lined up an emergency aid package to bolster its finances. The Dollar Index was little changed after rising to 82.07 on April 23, the highest level since March 25. Asian currencies, led by the won, and regional stocks gained today amid signs of a firmer economic recovery. Silver rose 0.3 per cent to $18.3925 an ounce, and platinum gained 0.4 per cent to $1,747.75 an ounce, nearing a 20-month high of $1,754.85 touched on April 22. Palladium gained 0.8 per cent at $567.50 an ounce, nearing the 25-month high of $572 also reached on April 22. Hedge-fund managers and other large speculators decreased their net-long position in New York gold futures in the week ended April 20, according to US Commodity Futures Trading Commission data.