Gold futures rose as the dollar pared gains, boosting demand for the precious metal as an alternative asset.
The greenback was little changed against a basket of major currencies after climbing as much as 0.4 percent. Christine Lagarde, the managing director of the International Monetary Fund, said at a press briefing in Washington that she expects the resources of the IMF to be “significantly increased” amid Europe’s sovereign-debt crisis.
“This is supportive news for gold, as we’re seeing the euro strengthen now,” Frank Lesh, a trader at FuturePath Trading in Chicago, said in a telephone interview. “This means more free money, and gold likes that.”
Gold futures for June delivery rose 0.1 percent to settle at $1,641.40 an ounce at 1:50 p.m. on the Comex in New York. Earlier, the price dropped as much as 0.5 percent.
Silver futures for May delivery gained 0.9 percent to $31.779 an ounce on the Comex.
On the New York Mercantile Exchange, platinum futures for July delivery slid 0.1 percent to $1,578 an ounce, and palladium futures for June delivery rose 0.9 percent to $663.30 an ounce.
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