Gold jumps as dollar declines

Gold prices jumped to the highest price in a week on Friday, rising for a second day, as the U.S. dollar fell versus the euro and traders noted a sense of returning willingness among investors to buy riskier assets, including commodities.

Gold futures for April delivery added $10.40, or 0.8%, to $1,118.90 an ounce, the highest since a week ago. It briefly rose as high as $1,119.50, back near the highest in a month.

Prices are still headed for a 0.2% weekly decline.

"Gold has a split personality in a schizophrenic market," said Jay Feuerstein, a commodities trader and founder of 2100 Xenon. "Sometimes gold trades like a de facto currency and sometimes it participates in a flight to quality, and now it's battling between the two."

Some investors may be buying gold as the weak data increases its investment appeal as a hard asset.

But also, as stocks gain and the dollar falls, commodities may join other so-called risky assets as investors move away from safer positions, like in the dollar. Read more on gold's decoupling from the dollar.

The U.S. dollar index, which tracks the greenback versus a basket of rivals, headed down after weak data on existing-home sales and consumer confidence. See story on existing-home sales.

The euro rose to buy $1.3618, from $1.3554 in late New York trading on Thursday, aided by a media report that a German bank may help Greece address its financial needs. See more on currencies.

"The metal is likely to continue to track the euro and broad risk sentiment in the coming sessions; however, dips are expected to draw further strong support from both jewelry and investment players and should provide a floor," said analysts at TheBullionDesk.com.

Read more

US gold futures rise as dollar drops

U.S. gold futures rose in quiet trade on Monday as a weaker dollar boosted bullion's
appeal as an alternative currency against a steadily falling greenback.

For the latest detailed report, click on [GOL/].

GOLD

* December gold futures GCZ9 up $1.90 at $1,053.40 an
ounce at 10:35 a.m. EDT (1435 GMT) in COMEX trade.

* Range from $1,048.60 to $1,057.80. December scaled a
record high $1,072 on Oct. 14.

* Dollar remains near recent lows on expectations that U.S.
interest rates will stay near zero.

* Gold's recent movements largely led by currency markets
rather than inflation.

* Any news to weaken dollar's reserve currency status would
be positive for gold - HSBC.

* Gold rise boosted by oil, which climbed above $79 per
barrel.

* Gold-to-oil ratio below 14 at 13.35, down tad from
previous session's 13.40.

* Pullback possible as noncommercial net longs hit record
high in week up to Oct. 13 - CFTC data.

* COMEX estimated 10 a.m. volume at 37,556 lots.

* Spot gold XAU= at $1,053.40 an ounce, against $1,050.80
late in New York in the previous session.

* London afternoon gold fix XAUFIX= $1,050.50.

Gold Futures

US gold bounces, ends higher on dollar-hedge buying

U.S. gold futures ended higher on Tuesday, rebounding from the previous session's sell-off based on doubts about economic recovery, and the strength of the dollar could set the tone for bullion in the near term.

GOLD

* December gold GCZ9 settled up $3.40 at $939.20 an ounce on the COMEX division of the New York Mercantile Exchange.

* Trading in a tight $6 range from $935 to $941.60.

* Gold rose amid a mixed bag of news as the dollar weakened and the U.S. producer price index fell more than expected in
July - Miguel Perez-Santalla, vice president of sales at Heraeus Precious Metals Management.

* The dollar is still the primary world currency, and the gold market's near-term direction could depend on its
interactions with the currency market and the overall economic sentiment - Perez-Santalla.

* The inverse relationship between gold and the dollar has been reasserting itself. Earlier this year, the traditional
link broke down because both assets benefited from a flight to safety amid economic fears - analysts.

* COMEX estimated final gold volume at 49,512 lots.

* Spot gold XAU= at $938.15 an ounce at 3:20 p.m. EDT (1920 GMT), against $932.80 in late Monday dealings in New
York.

* London afternoon gold fix XAUFIX= at $935 an ounce.

http://www.reuters.com/article/usDollarRpt/idUSN1843489020090818