Gold Extends Gain to Four-Month High as Dollar Drops Verus Euro

By Pham-Duy Nguyen

April 12 (Bloomberg) — Gold futures rose, extending a rally to a four-month high, as the dollar’s drop boosted the appeal of the precious metal as an alternative asset.

The greenback fell against the euro after Greece was offered as much as 45 billion euros ($61 billion) to ease debt. Last year, gold rallied 24 percent as the dollar fell 4.2 percent against a basket of major currencies.

“You can’t knock gold,” said Marty McNeill, a trader at R.F. Lafferty & Co. in New York. “It’s playing the currency game with the mighty dollar.”

Gold futures for June delivery climbed $3.80, or 0.3 percent, to $1,165.70 an ounce at 11:29 a.m. on the Comex in New York. Earlier, the most-active contract reached $1,170.70, the highest level since Dec. 4. Before today, the metal gained 4.3 percent this month.

–Editors: Patrick McKiernan, Steve Stroth
To contact the reporter on this story: Pham-Duy Nguyen in Seattle at [email protected]
To contact the editor responsible for this story: Steve Stroth at [email protected]