Gold Rebounds With Weakening Dollar Offering Relief to Investors

By

Ranjeetha Pakiam. BLOOMBERG

Bullion typically moves inversely to the U.S. currency, which surged to arecordthis week, with gold taking a back seat to the greenback as the preferred haven.

Spot gold rose 1.4% to$1,491.59an ounce at 11:32 a.m. in New York, poised for the biggest gain since March 5. The rally pares the metal’s weekly decline to 2.5% after an 8.6% slump last week, the worst since 1983.

Other precious metals also advanced, with silver trading at$12.597an ounce after jumping as much as 7.5%, the most since December 2014. Silver has been hard hit by the global sell-off, but there are some signs that sentiment is turning, with exchange-traded fundsbuying the metalin the past two days.

Many investors see current precious-metals prices as a buying opportunity.

“When I think about what would I buy in the right here and now, I would be buying gold,” Wayne Gordon, executive director for commodities and foreign exchange at UBS Group AG’s wealth-management unit,told Bloomberg TV. Prices may appreciate over three to six months, he said.