Gold up as investors express concerns over dollar

The value of gold has risen for the second consecutive day due to concerns the dollar may fall as a result of the European Union’s (EU’s) rescue package for Greece.

At 10:35 local time in Singapore, the precious metal was up 0.4 per cent - or $4.25 (£2.70) - to $1,105.35 per ounce, Bloomberg reports.

Futures in the commodity were also higher, climbing by up to 1.6 per cent on the Comex division of the New York Mercantile Exchange, taking it to $1,107.30 per ounce.

Gold traditionally has an inverse relationship with dollar, as those with high levels of personal wealth use it as a safe haven when the value of the greenback is seen to be at risk.

’If we get a relief from the EU in terms of a solid outcome [of the Greece agreement] then we’ll get a rally in the euro and obviously that will cause weakness in the US dollar,’ Jonathan Barratt of Commodity Broking Services was quoted as saying.

Interest in other metals was also higher today, with the news agency reporting that both copper and aluminium have risen in value.ADNFCR-2318-ID-19618207-ADNFCR