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Gold futures edge up to 3-week high on soft U.S. dollar

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Forex Pros - Gold futures edged higher on Thursday, climbing to a three-week high as a broadly weaker U.S. dollar boosted the appeal of the precious metal, while silver prices rallied to a two-week high.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,529.85 a troy ounce during late Asian trade, rising 0.2%.

It earlier rose as much as 0.35% to USD1,532.05 a troy ounce, the highest price since May 4.

The U.S. dollar weakened against the euro after a senior official from the People's Bank of China said Beijing should expand its purchases of euro zone sovereign debt and increase direct investment into Europe.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.55% to hit 75.60, the lowest level since May 19.

Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.

Lingering concerns over Greece's sovereign debt continued to support prices. On Wednesday, Greece's European Union commissioner Maria Damanaki said that Greece's euro zone membership was at risk and that the country must agree on tough austerity measures or return to the Drachma.

Meanwhile, the Bombay Bullion Association said it expected India's gold imports to reach a record level of 1,000 metric tons this year if the monsoon season was good.

"Strong monsoon rainfall increases the income of the rural population, who are major buyers of gold jewelry in the world's largest gold consumer country," said Bhargav Vaidya, director of the BBA.

Elsewhere, silver for July delivery rallied 1.2% to trade at a two-week high of USD38.28 a troy ounce during late Asian trade, while copper for July delivery added 0.5% to trade at USD4.125 a pound.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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