(Bloomberg) – In London gold extended gains as the dollar slipped to a 2-year low in contrast to the euro, increasing demand for the yellow metal as an alternative investment.
The U.S. currency declining versus most main peers ahead of a report today that could display continuing jobless claims in the U.S. increased. Gold dropped 20% this year whereas the Bloomberg Dollar Index firmed 1.3%.
Bernard Sin, head of currency and metal trading at bullion refiner MKS (Switzerland) SA in Geneva said “It’s all U.S. dollar driven,” The physical demand is “slow out of Asia.”
The London A.M. fix is $1,336.25.
Gold for immediate delivery increased 0.6% to reach $1,341.90 an oz at 8:14 a.m. in London.