Futures Market News
Slumping dollar benefits gold futures
Apr 17, 2012 02:56 PM
Gold futures climbed higher from their lowest price in seven days on Tuesday, benefiting from a less-than-strong performance by the U.S. dollar, according to Bloomberg.
The world's reserve currency marked two consecutive trading sessions of losses against competitor currencies as preoccupations about the sovereign debt crisis eased after a strong sale of debt in Spain. The International Monetary Fund enhanced world projections for economic development and growth for the remainder of this year and next year.
"The dollar's weakness is supporting all commodities, including gold," market analyst Sterling Smith with Country Hedging in Minnesota told the news service.
Prior to Tuesday's market performance, the value of gold futures has gained more than 5 percent thus far this year as the precious metal barrels toward a 12th consecutive year of annual gains.
At 2:58 p.m. on Tuesday, gold futures increased 0.09 percent, a $1.50 lift to $1,651.20 per troy ounce.
But the IMF, a Washington-based monetary regulator, pointed to troubles in Italy for this year, also noting that Spain ought to execute bank and labor policy plans, The Wall Street Journal reports. Both nations have seen bond yields approach the 7 percent figure that prompted Ireland, Portugal and Greece seek bailout funding.
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