26
February
Gold May Rise for Second Day in London as Dollar’s Rally Stalls
26 February 2010 Business Week
Feb. 26 (Bloomberg) -- Gold, little changed in London today, may rise for a second day as concerns about Greece’s debts and a stall in the dollar’s rally increased the metal’s appeal as an alternative investment.
Greece may have its sovereign debt rating lowered within months if it fails to meet the objectives in its plan to reduce its budget deficit, Moody’s Investors Service said yesterday. The dollar fell as much as 0.6 percent against the euro after yesterday climbing to near a nine-month high. Gold, down for the first week in three, typically moves inversely to the greenback.
“The euro zone scenario is still lingering in the market,” said Bernard Sin, head of currency and metals trading at gold refiner MKS Finance SA in Geneva. “People don’t trust the dollar, they don’t trust the euro, so the only way to go is to look at other alternatives such as gold. It’s a safe haven.”
