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Gold may further go up on dollar drop

29 September 2009 10:04 (UTC +04:00)

Baku -APA-Economics. Gold, little changed in Asia, may gain as the dollar renews a decline and geopolitical tension in the Middle East boosts demand for the precious metal as an alternative investment, Bloomberg reported.
The Dollar Index, which tracks the greenback against the six major currencies including the yen, fell as much as 0.3 percent. A rise in U.S. stocks also cut demand for so-called haven currencies.
Gold for immediate delivery traded little changed at $991.84 an ounce at 2:26 p.m. in Singapore, after gaining as much as 0.3 percent earlier. Bullion has risen 4.2 percent this month as the dollar slid 2 percent against the euro and 3.4 percent versus the yen.
Gold may also rise as investors seek a haven from geopolitical tension in the Middle East, according to HSBC Securities analyst James Steel. Iran yesterday test-fired its Shahab-3 missile, which puts Israel within reach, amid a threat that international talks this week on its nuclear program will lead to further sanctions.
Among other precious metals for immediate delivery, silver was down 0.2 percent at $16.15 an ounce, platinum was little changed at $1,277.50 an ounce, while palladium increased 0.3 percent to $289.25 an ounce at 2:14 p.m. in Singapore.