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Gold & Silver Continue Upwards
Gold headed for its second consecutive monthly gain, spurred by investment fund buying and speculation the U.S. dollar will decline.
Gold has gained 24 percent this year, partly on increased investment by funds seeking to diversify their portfolios. The dollar is poised for its biggest monthly drop in a year-and-a- half against the euro and yen on speculation interest rates will rise faster in Europe and Japan than the U.S. Some investors buy gold as a hedge against declines in the dollar.
``Remorseless buying of precious metals by investors has pushed prices higher,'' Stephen Briggs, an analyst at Societe Generale in London, said in a telephone interview today. ``Quietly behind in the background is dollar weakness.''
Gold for immediate delivery was $4.95, or 0.8 percent, higher at $638.58 an ounce as of 11:17 a.m. in London. Gold has gained 9.4 percent this month, after adding 3.9 percent in March.
Silver for immediate delivery was 1 cent higher at $12.66 an ounce. The metal has added 10 percent this month, also its second consecutive gain.
The dollar has slumped as U.S. Federal Reserve policy makers including Chairman Ben S. Bernanke signaled a pause in their 22- month cycle of rate increases.
