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Gold firms as German data sends dollar falling

Published 04/20/2012, 01:47 PM
Updated 04/20/2012, 01:49 PM
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Investing.com - Gold prices rose in U.S. trading on Friday, as better-than-expected German business sentiment data sent the euro and other currencies rising and gold's traditional hedge, the dollar, falling.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded up 0.05% at USD1,642.15 a troy ounce.

Gold traded at a low of USD1,639.15 a troy ounce and hit a high of USD1,647.95 a troy ounce during the session.

The precious metal sought to test support at USD1,613.55 a troy ounce, the low of April 4, and resistance at USD1,699.55, the high on March 27.

Investors worldwide took on risk Friday on news business morale is up in Germany despite concerns the European debt crisis is intensifying in Spain.

The German Ifo business sentiment index for April rose to 109.9 from 109.8 the previous month, outpacing expectations for the figure to drop to 109.5.

April's figure represented a nine-month high.

Meanwhile, International Monetary Fund Managing Director Christine Lagarde said she expects member countries to contribute more to a firewall to contain the debt crisis.

The news sent the dollar falling as investors bought stocks and other more rewarding assets, which sent gold rising.

Gold and the dollar often trade inversely of one another.
 
Elsewhere on the Comex, silver for May delivery was down 0.41% and trading at USD31.648 a troy ounce, while copper for May delivery was up 1.81% and trading at USD3.693 a pound.






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