Wednesday, August 17, 2016

Gold Rises in N.Y., Heading for Quarterly Gain; Silver Declines

March 31, 2009 by · Leave a Comment 

By Pham-Duy Nguyen

March 31 (Bloomberg) — Gold rose in New York, heading for
a second straight quarterly gain, on speculation that a weaker
dollar will boost the metal’s appeal as an alternative asset.
Silver fell.

The U.S. Dollar Index, a six-currency gauge, fell as much
as 0.9 percent, halting a three-session rally. Gold and the
dollar are inversely correlated. . .

“For investors who are concerned about the long-term
prospects of the U.S. dollar, gold may be attractive,” John Reade, a UBS AG metals strategist, said today in a report. “In
an environment where the reserve currency of the world could
become shunned, gold could do extraordinarily well.” Gold futures for June delivery rose $2.80, or 0.3 percent,
to $920.50 an ounce at 11:27 a.m. on the New York Mercantile
Exchange’s Comex division. The most-active contract is up 4
percent this quarter, which would be the biggest quarterly gain
in a year.

Silver futures for May delivery fell 19.8 cents, or 1.5
percent, to $12.835 an ounce in New York. The price has jumped
14 percent this year, which would also be the biggest quarterly
gain in a year.

Gold and the dollar usually move in the opposite direction.
Gold has posted gains every year since 2001, and the dollar has
only risen in three of those years.

Devalued Currencies

Investors may also purchase gold as central bank policies
to ease borrowing costs devalue currencies, analysts said. Gold
priced in euros and pounds reached records in February. Gold
futures rose to an all-time high of $1,033.90 on March 17, 2008
and reached $1,007.70, the highest this year, on Feb. 20. . . .

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