MW : Gold rises for second day as dollar continues its decline
The dollar fell after finance ministers from the Group of Seven nations made no specific mention of the currency in a joint communiqué at their weekend meeting. Also helping gold, holdings in the biggest gold exchange-traded fund rose in the previous session.
On the Comex division of the New York Mercantile Exchange, the most actively traded December gold contract edged slightly up to $1,004.40 an ounce, after rising as high as $1,008.60 an ounce. The contract ended last week's trading up 1.3%.
"Gold surged back through $1,000 as the dollar weakened," wrote analysts at GoldCore in a note. "Concerns regarding a second economic downturn will likely lead to renewed risk aversion and this bodes well for gold."
In currencies trading Monday, the lack of an explicit mention for the greenback in the G7 meeting triggered the liquidation of some long U.S. dollar positions early Monday, analysts said.
The euro rose 0.2% against the dollar to $1.4602. The dollar index (DXY 76.90, -0.08, -0.11%) was down 0.1% at 76.938. See Currencies.
Holdings in the SPDR Gold Trust (GLD 98.30, -0.07, -0.07%) , the biggest gold ETF, rose 1.22 metric tons to 1,096.55 metric tons Friday.
In other metals trading, December copper futures fell 1.05 cents, or 0.4%, to $2.671 a pound. Silver for December delivery was almost flat at $16.235 an ounce.
October platinum gained $3.40, or 0.3%, to $1,279 an ounce, and December palladium rose $2.70, or 0.9%, to $300.90 an ounce.
