More on the Gold Market #2
. . . . Gold gained in Asia amid speculation a fall in the dollar will help to boost demand for the precious metal as an alternative investment. Silver also rose.
Gold generally moves in tandem with the euro which gained against the dollar on speculation Europe's inflation rate will quicken, boosting the prospect the European Central Bank will raise interest rates tomorrow. Gold has risen 5.6 percent this year, while the euro gained 2.2 percent.
``The softer dollar is definitely a factor supporting the gold price this morning,'' David Moore, commodities strategist at Commonwealth Bank of Australia said by phone today from Sydney. ``Some people in the market are viewing $675 as a possible point of resistance.'' . . . .
. . . . The ECB, due to meet tomorrow, is expected to increase borrowing costs by a quarter percentage point to 4 percent, all 52 economists forecast in a Bloomberg News survey. . . .