Gold Trades Near Three-Month High After Data Depress U.S. Dollar
by Phoebe Sedgman
The metal gained to $1,227.26 on May 14, the highest since Feb. 17. Gold in Shanghai rose a fourth day. Investors are tracking economic data for signs of when the Federal Reserve will raise borrowing costs for the first time since 2006. Declining consumer sentiment and softening factory output drove the Bloomberg Dollar Spot Index lower for a fifth week on Friday, the longest stretch since October 2013, boosting the allure of bullion.
Speculators increased their net-long position in the week to May 12 by the most in a month. “Poor U.S. data fueled a rally in precious metals, which were also supported by a weaker U.S. dollar,” Australia & New Zealand Banking Group Ltd. wrote in a note.