Gold Gains in New York, London as Weaker Dollar Spurs Demand

Aug, 13, 2009 | Bloomberg.com

Gold rose to the highest price this week as the dollar declined, increasing the metal’s appeal as an alternative investment. Silver climbed to a two-month high, and platinum and palladium rose.

The dollar fell for a third day against a basket of six major currencies after a report showed U.S. retail sales unexpectedly fell last month, adding to concern that consumers are unwilling to increase spending. The greenback slid as much as 0.9 percent against the euro after the German economy, Europe’s largest, unexpectedly expanded in the second quarter. Bullion tends to climb when the U.S. currency weakens.

“The dollar is under fire today,” GoldCore Ltd., a brokerage in Dublin, said in a note to clients. “Gold is taking up the slack.”

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