Gold moves up for seventh straight day as dollar softens

08:25, August 06, 2010      

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Gold futures on the COMEX Division of the New York Mercantile Exchange continued to move up on Thursday, extending the longest rally of the year, benefiting from the tumbling U.S. dollar and the downbeat jobless data. Silver inched up, but platinum dipped.

The most active gold contract for December delivery was up 3.4 dollars, or 0.3 percent, to finish at 1,199.3 U.S. dollars per ounce.

The U.S. initial unemployment benefits claims unexpectedly added 19,000 to 479,000 last week, which is the highest level since April. Analysts had expected it to drop to 455,000, as the number dropped 8,000 in the previous week to a revised 460,000 level.

The surprise spike in jobless benefits claims signaled that employers are still reluctant to create jobs, and worsened investors' concern that the high unemployment rate may continue to hamstring the U.S. economic recovery.

U.S. equity markets edged lower, but gold gained some support after the report was released, as the weak data enhanced gold's appeal as safe-haven.

The European Central Bank held its interest rate steady on Thursday as expected. This news, along with the upbeat German industrial data, helped lift the euro to a 3-month high against the dollar. The dollar tumbled against a basket of six major currencies, pressured by the stronger euro as well as disappointing jobless data. The decline in the dollar has sparked demand for the bullion as an alternative investment.

September silver was up 4.3 cents, or 0.2 percent, to settle at 18.321 dollars per ounce. October platinum dipped 13.7 dollars, or 0.9 percent, to settle at 1,572.5 dollars per ounce.



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