Gold Jumps as Dollar Weakens Further


Gold is pushing higher as the dollar falls, as investors bet the Fed will keep interest rates low for the foreseeable future. New York futures are up 0.9% at $1,997 a troy ounce as the weak dollar makes it easier for investors holding other currencies to buy the precious metal. The ICE Dollar Index has fallen to a two-year low of 91.92 in early European trading. However, the latest rally might not be on “firm ground” James Steel, chief precious metals analyst at HSBC, says. Bond yields have actually risen–usually a negative for gold–and the dollar is likely to strengthen, he says. “This leads us to think the move up has been overdone and should bond yields stay firm, or USD selling abate, gold could weaken.”