Gold climbed for the first time in four days, reversing an earlier loss, as the dollar’s rally stalled, increasing the appeal of the precious metal as an alternative investment. Silver gained for a second day.
Bullion rose as much as 0.2 percent as the dollar fell against a basket of six major currencies. Gold shed 0.9 percent on Aug. 7 as the dollar index gained after the U.S. jobless rate in July dropped to 9.4 percent, the first decline since April 2008. Economists had forecast an increase to 9.6 percent.
“This is a tug of war between gold prices and the U.S. dollar,” Gavin Wendt, a senior resources analyst at Fat Prophets Funds Management, said in an interview today. “It’s been an ongoing battle with the U.S. dollar, almost done on a daily basis.”
Gold Rallies as Dollar Advance Stalls, Boosting Demand Prospect - Bloomberg.com
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