Gold futures rose after the dollar’s drop and crude oil’s rally boosted the appeal of the metal as a store of value.
The greenback fell as much as 0.6 percent against a basket of 10 currencies. Oil in New York topped $60 a barrel, and gasoline futures rose. Gold jumped as much as 1.1 percent before paring gains.
The metal has climbed 4.3 percent from this year’s low of $1,141.60 an ounce on March 17. The dollar fell 2.9 percent in April, snapping a record nine-month rally. The greenback dropped on Tuesday as bond yields outside the U.S. advanced relative to Treasuries. Oil has jumped more than 40 percent from the 2015 low.
Gold futures for June delivery rose 0.6 percent to $1,190.60 at 10:09 a.m. on the Comex in New York. Volume in all contracts was 12 percent above the 100-day average for this time, according to data compiled by Bloomberg.
On Monday, holdings in exchange-traded products backed by gold fell for the fourth straight session to the lowest since Jan. 15, according to Bloomberg data.
Silver futures for July delivery rose 0.4 percent to $16.385 an ounce. Earlier, the price touched $16.12, the lowest for a most-active contract since May 1.
Source : Bloomberg