By Halia Pavliva and Nicholas Larkin
July 23, 2009 (Bloomberg) — Gold prices rose to the highest in five weeks as the dollar retreated, supporting demand for the precious metal as an alternative investment. Silver also gained.
Gold has climbed 2 percent this week as the dollar dropped 1.2 percent against the euro. Earlier, the metal reached $956.90 an ounce, the highest since June 12.
“Gold is in a range and probably has limited upside in the short term, but is also well supported on the downside,” Patrick Chidley, an analyst at Barnard Jacobs Mellet LLC, said in an e-mail. “There are good reasons to believe the dollar should weaken, and in that case, gold will be a beneficiary, but it’s not necessarily going to occur overnight.”
Gold futures for August delivery rose $2.50, or 0.3 percent, to $955.80 at 11:30 a.m. on the Comex division of the New York Mercantile Exchange. Bullion for immediate delivery rose $4.11, or 0.4 percent, to $955.51.
Silver for September delivery added 14 cents, or 1 percent, to $13.84 an ounce.
U.S. stocks rose, sending the Dow Jones Industrial Average above 9,000 for the first time since January, after some companies reported earnings that topped analysts’ estimates and home resales increased more than forecast.
“Earlier this month, economic worries encouraged investors to buy the dollar and Treasuries,” Pradeep Unni, an analyst at Richcomm Global Services in Dubai, said in a report. “Appetite for other assets, including gold and equities, seems to be returning.”
Before today, gold rose 7.8 percent this year, and silver gained 21 percent
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