Bloomberg News

Gold Rises to Three-Month High as Dollar Drops; Silver Gains

February 23, 2012

Feb. 23 (Bloomberg) -- Gold futures rose to a three-month high as the dollar’s drop spurred demand for the precious metal as an alternative investment. Silver jumped to a 16-week high.

The greenback fell the most in two weeks against a basket of currencies. German business confidence climbed to the highest in seven months in February, and the number of Americans filing first-time claims for unemployment insurance payments last week held at a four-year low.

“Strong economic numbers out of the U.S. and Germany are pushing the dollar down and helping gold,” Michael A. Gayed, the chief investment strategist who helps oversee $150 million at New York-based Pension Partners LLC, said in a telephone interview. “Some investors expect inflationary pressure as the U.S. economy improves.”

Gold futures for April delivery gained 0.8 percent to settle at $1,786.30 an ounce at 2:04 p.m. on the Comex in New York. Earlier, the price reached $1,789.50, the highest for a most-active contract since Nov. 14.

Silver futures for May delivery advanced 3.8 percent to $35.636 an ounce, the biggest gain since Jan. 20. Earlier, the price reached $35.68, the highest since Oct. 28.

On the New York Mercantile Exchange, platinum futures for April delivery gained 0.1 percent to $1,723 an ounce. Earlier, the metal reached $1,736.50, the highest since Sept. 22.

Palladium futures for March delivery climbed 0.1 percent to $718.40 an ounce.

--Editors: Patrick McKiernan, Thomas Galatola

To contact the reporter on this story: Debarati Roy in New York at droy5@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net


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