Business

Tuesday November 3, 2009

Gold, other metals rise as US$ weakens


NEW YORK: Gold and other precious metals rebounded Monday as the dollar weakened.

The dollar fell after stronger-than-expected reports on manufacturing and housing drove investors to put their money in higher-yielding assets, like stocks and commodities.

A weaker greenback also makes dollar-based commodities cheaper for investors using stronger currencies.

Gold prices closed at their highest level in more than a week, rising $13.60 to $1,054 an ounce on the New York Mercantile Exchange.

Gold came under pressure last week amid a bout of strength in the dollar.

Among other precious metals, December silver jumped 18.5 cents to $16.44 an ounce, while December platinum rose $11.80 to $1,334.90 an ounce.

Palladium also rose.

December copper futures slipped 1.05 cents to $2.945 a pound.

Investors were encouraged by a report from the Institute for Supply Management saying U.S. manufacturing activity grew in October at the fastest pace in more than three years, spurring hopes for a pick up in demand for basic materials.

A similar report showing an eighth straight month of growth in manufacturing activity in China also heartened investors. China is a huge importer of commodities.

Also Monday, the National Association of Realtors said sales of previously owned homes rose for the eighth straight month in September as buyers rushed to take advantage of a tax credit for first-time owners that expires at the end of November.

A government report, meanwhile, showed an unexpected increase in construction spending.

Elsewhere on the Nymex, oil prices gained $1.13, or 1.5 percent, to $78.13 a barrel.

December gasoline futures rose 3.08 cents to $1.9903 a gallon, while heating oil futures rose 4.08 cents to $2.046 a gallon.

On the Chicago Board of Trade, December wheat futures jumped 22.5 cents to $5.1675 a bushel, while corn for December delivery rose 16.25 cents to $3.8225 a bushel.

January soybeans rallied 21.5 cents to $9.98 a bushel.

Among other soft commodities, December coffee prices rose 6.85 cents to $1.4235 a pound. - AP


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