Capital Gold Group Report: Gold Rises in N.Y. on Speculation Dollar's Rally May Stall

 

By Pham-Duy Nguyen

Last Updated: March 24, 2008 09:20 EDT

March 24 (Bloomberg) -- Gold rose in New York on speculation the dollar's advance against the euro will stall. Silver increased.

The euro climbed as much as 0.2 percent against the dollar before paring gains. The euro slumped 1.6 percent last week versus the U.S. currency, while gold tumbled 8 percent after reaching a record $1,033.90 an ounce on March 17.

``Gold is looking to the dollar for direction,'' said Frank Lesh, a trader at FuturePath Trading LLC in Chicago. ``All these funds that invested in commodities need to figure out if they're coming back in or selling more.''

Gold futures for April delivery rose $2.80, or 0.3 percent, to $922.80 an ounce at 9:17 a.m. on the Comex division of the New York Mercantile Exchange. Before today, the metal gained 9.8 percent this year.

Silver futures for May delivery climbed 12.5 cents, or 0.7 percent, to $16.95 an ounce. Before today, the price gained 13 percent this year. The metal plunged 18 percent last week.

 

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