MW: Gold nears new high for 2010 as dollar falls vs. euro
By Deborah Levine, MarketWatch
NEW YORK (MarketWatch) -- Gold futures rose Wednesday but came off earlier highs, playing off the euro's gains against the dollar that made the precious metal more attractive as an investment alternative.
Gold for April delivery rose $2.60, or 0.2%, to $1,140 an ounce.
It earlier rose as high as $1,144.40, the loftiest level seen since Jan. 11, when it closed at $1,151.40 an ounce, the high for 2010.
In foreign-exchange dealings, the dollar fell against the euro after Greece outlined further austerity measures to rein in its deficit. The euro climbed to $1.3652, up from $1.3608 in North American trading late Tuesday. See more on the latest Greece developments and their implications for financial markets in Currencies.
From current levels, gold will face resistance around $1,146 and again at $1,162 an ounce, according to analysts at Commerzbank.
Silver may also benefit from the improved outlook for gold, analysts at TheBullionDesk.com wrote in a note.
With silver viewed as a less expensive alternative to gold and with fund exposure to silver at a "relatively low level," the analysts said it's "well placed for more substantial gains."
Silver for May delivery, the most active contract, rose 1% to $17.23 an ounce.
Gold has gained 3.8% so far this year, while silver has risen 1.3%.
