By Glenys Sim
Oct. 6 (Bloomberg) -- Gold advanced for a third day, trading at more than $1,000 an ounce, as a tumbling dollar spurred demand for the precious metal as a store of value.
Holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by the metal, expanded for a second day to 1,098.07 metric tons yesterday, data on the company’s Web site showed. The trust’s holdings are 3.2 percent from the record 1,134.03 tons reached June 2.
“The fragility of the dollar is generating investor interest in gold,” David Moore, commodity strategist at Commonwealth Bank of Australia, said from Sydney.
Gold for immediate delivery rose $2.30 to $1,019.60 an ounce at 9:46 a.m. in Singapore, extending yesterday’s 1.5 percent gain. December-delivery bullion on the Comex division of the New York Mercantile Exchange was up 0.3 percent at $1,020.60 an ounce.
Gold has risen about 2.5 percent in the past month as the Dollar Index, which tracks the greenback against the currencies of six trading partners including the euro and yen, lost 2.1 percent. Bullion tends to rise when the dollar falls as it becomes cheaper for holders of other currencies.
Among other precious metals for immediate delivery, silver gained 1.5 percent to $16.89 an ounce, while platinum and palladium were little changed at $1,297.50 an ounce and $300.75 an ounce respectively as of 9:38 a.m. in Singapore.
To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net
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