Gold rose in New York and London after the dollar declined, boosting appeal of precious metals as an inflation hedge. The U.S. Dollar Index dropped 0.9 percent on speculation that European Union officials will agree to assist Greece to tackle its budget deficit. Gold have tendency to gain when greenback falls.
As concern for European woes is decreasing, the demand for gold and other investment assets rebound. China’s
April delivery for gold futures gained $15.10 (1.4 percent) to $1,081.30 per ounce by 12:02 on the Comex division of the New York Mercantile Exchange. Previous decline was considered as “a buying opportunity” and have increased bullion purchases.
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