Gold Rises as Dollar Drops Amid Concern U.S. Economy Is Slowing - by Chia-Peck Wong
Gold prices rose for a seventh day as concerns about a slowdown in the U.S. economy led its currency to decline, prompting some investors to buy the precious metal as an alternative investment. Investors typically buy gold to hedge against a drop in the value of other dollar-denominated assets. The dollar declined to its weakest in five weeks against the yen yesterday as reports showed consumer confidence unexpectedly fell, and Chicago factory output slowed. ``The weak dollar has triggered some buying,'' Peter Tse, chief precious metals dealer at ScotiaMocatta, the bullion arm of Bank of Nova Scotia, said today from Hong Kong.
``We may see another $10 follow-through with some more data coming out of the U.S.'' should gold close above $610, he said.
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