Gold Becomes Attractive As Dollar Encourages Demand (GLD)

Gold is expected to rise, as a temporary halt in the dollar’s rally encouraged demand for gold as an alternative investment.

Gold, which moves in the opposite direction of dollar, declined 1.1 percent last week as dollar climbed 2 percent. Holdings in the SPDR Gold Trust (ETF) (NYSE: GLD), the biggest exchange- traded fund backed by bullion, was unchanged at 1,111.92 metric tons.

According to the Bloomberg, gold prices are near the lowest level in three months, and this may help attract some buyers. Andrey Kryuchenkov, an analyst at VTB Capital in London, said that clear evidence of renewed and persistent physical buying is needed for the prices to rally.