Gold Rebounds, as Dollar Slumps
Gold prices climbed higher Friday as the greenback sank.
Benchmark bullion futures closed $7.50 higher at $925.80 an ounce on the Comex division of the New York Mercantile Exchange.
News that the inventory of unsold homes in the U.S. rose to 11 months of supply during April, up from 10 in March, helped undermine confidence in the dollar. As the value of the U.S. currency declines, the price of gold tends to move upwards.
The
SPDR Gold Trust
(GLD) - Get Report
, which holds bars of solid gold, was rising 0.3% in recent trading on the
New York Stock Exchange
.
As for the precious metals patch, African miners
Gold Fields
(GFI) - Get Report
and
Harmony Gold Mining
(HMY) - Get Report
were both declining despite the rally in the metal price, off 1.4% and 1.8% respectively.
Agnico Eagle Mines
(AEM) - Get Report
was up 0.8%
In the foreign-exchange market, one euro was buying $1.5776 vs. $1.5697 on Thursday. One dollar was trading for 103.3 Japanese yen declining from 104.3 yen previously. The British pound was selling for $1.9744 vs. $1.9715.
The
CurrencyShares Euro Trust
(FXE) - Get Report
and the
CurrencyShares Japanese Yen Trust
(FXY) - Get Report
were rising 0.4% and 0.8% respectively. The
CurrencyShares British Pound Sterling
(FXB) - Get Report
was up 0.1%.