By Kim Kyoungwha Jan. 11 (Bloomberg) -- Gold advanced to the highest level in more than a month as a weaker dollar increased demand for the precious metal. The dollar dropped against a six-currency basket after a report yesterday showed China’s exports rose for the first time in 14 months and imports reached a record in December, reviving risk appetite. Bullion, which typically moves inversely to the dollar, rose 24 percent last year as the dollar fell 4.2 percent. “Interest from investors has certainly been coming as a result of a declining dollar,” said Toby Hassall, a commodity analyst with CWA Global Markets Pty in Sydney. China’s trade data “could be factored into today’s moves,” Hassall said. Gold for immediate delivery gained as much as 1.8 percent to $1,158.40 an ounce, the highest price since Dec. 8, before trading at $1,154.53 at 10:32 a.m. in Singapore. February- delivery gold in New York rose as much as 2.1 percent to $1,163. The Dollar Index, which tracks the dollar against the currencies of six major U.S. trading partners, dropped 0.5 percent today. The index has fallen 14 percent from the 2009 peak reached in March as evidence of a global economic rebound prompted investors to buy higher-yielding assets. Gold may rise this week as investors buy to hedge against signs of inflation, a Bloomberg survey showed on Jan. 8. Fourteen of 20 traders, investors and analysts, or 70 percent, said bullion would gain this week. Six forecast lower prices. Record Forecast Gold reached a record $1,227.50 on Dec. 3. The price may reach another all-time high this year, analysts surveyed by the London Bullion Market Association said. In 2010, gold will average $1,199, up 23 percent from last year, according to the average forecast in a survey of 26 traders and analysts. Exports to China rose 17.7 percent in December from a year earlier and imports jumped 55.9 percent, the customs bureau said yesterday. Year-on-year comparisons are affected by the drop that began in late 2008 as the global credit crisis deepened. “China remains a very positive influence on commodity markets,” said Yingxi Yu, a Singapore-based analyst with Barclays Capital, referring to metals and energy. Crude oil rose as much as 1.1 percent to $83.67 a barrel on the New York Mercantile Exchange. London copper gained as much as 2.9 percent. Among other precious metals, silver jumped as much as 1.7 percent to $18.785 an ounce, the highest price since Dec. 4. Platinum fell as much as 0.8 percent to $1,565.65 an ounce and palladium declined 0.5 percent to $427 an ounce. To contact the reporter on this story: Kyoungwha Kim in Singapore at Kkim19@bloomberg.net

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