Gold close to 4-week high on weak dollar

Business

oi-Monika Nihalani

By Monika Nihalani

Published: Tuesday, May 31, 2011, 16:15 [IST]

Singapore, May 31: Gold futures reached closer to 4-week high on Tuesday aided by weak dollar and lingering euro zone debt worries.

European Union's decision on a new aid package for Greece in the end of forthcoming month urged hope amidst investors which in turn prompted the euro against the dollar.

The gold contract traded between a range of $1,535.55, the daily low and $1,541.75 an ounce, the highest since May 4. Gold is down 1.7 per cent so far in May, after touching lifetime high around $1,575 early this month.

Physical market lacked activity, but speculators in futures market drove prices on other economic concerns. Dollar weakness always makes yellow metal more dearer.

The euro rose at $1.4407, its highest in three weeks against dollar. Investors preferred yellow metal as an alternate asset over other worries.

OneIndia Money