By Kim Kyoungwha
Gold headed for a fifth weekly advance, the longest winning streak since November 2007, as investors bought precious metals and other commodities on speculation a reviving economy will stoke inflation.
Bullion closed above $1,000 for a fifth day yesterday as the Dollar Index, which gauges the strength of the U.S. currency against those of six major trading partners, yesterday dropped to the weakest level in almost a year. U.S. housing starts increased to the highest level in nine months and manufacturing in the Philadelphia region expanded more than forecast, adding to signs that a recovery in the economy is taking hold.
“Investor demand is very strong as an improvement in the global economy raises the prospect of inflation,” said Steve Chun, a trader with Hyundai Futures Co. in Seoul. “We see a considerable amount of upward momentum out there.”