Reply #55: Gold Rises as Slide in Yen, Dollar Boost Appeal as Alternative

[citizen snips]

Feb. 8 (Bloomberg) -- Gold rose in New York as a drop in the value of the dollar and yen against the euro helped to boost the appeal of the precious metal as an alternative investment.

Gold generally moves in the same direction as the euro, which rose against the dollar and approached a record versus the yen after European Central Bank President Jean-Claude Trichet signaled policy makers may boost interest rates next month. Gold gained 23 percent last year, while the euro climbed 10 percent against the dollar.

``The euro is a big part of gold's support today,'' said Matthew Zeman, a metals trader at LaSalle Futures Group in Chicago.

Gold futures for April delivery rose $5.50, or 0.8 percent, to $662.80 an ounce on the Comex division of the New York Mercantile Exchange. Prices are up 3.9 percent this year.

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http://www.bloomberg.com/apps/news?pid=20601012&sid=aVfhCjfRPFW8&refer=commodities