Gold rises 7th day on Dollar, longest run of gains in 9 months

Gold rose for a seventh day, the longest run of gains in nine months, as a declining dollar bolstered the allure of the precious metal.

Bullion reached $1,007.70 yesterday, the highest since March last year, and is on course for a ninth annual gain as worldwide government spending to fight a global recession spurred investors to buy gold as a hedge against inflation. The euro rose toward a nine-month high against the dollar. “The dollar’s weakness is the strongest driver for gold,” said Park Jong Beom, a senior trader with Tongyang Futures Co. in Seoul. “It has further momentum to push prices higher given that signs of an economic recovery also provide a cause for buying as a hedge against inflation.”