Broadgate: Market News 29/2
29 February 2012
Gold surpassed platinum as the most expensive metal used in jewelry in August for the first time since December 2008. Gold demand from jewelry makers dropped 3 percent last year, according to the World Gold Council. Platinum use climbed 1.8 percent.
In India, the world’s biggest market for gold ornaments, the grayish-white metal’s popularity is gaining among young women, with the switch partly explained by the surge in gold prices.
Gold advanced to a three-month high and silver posted its biggest gain in eight weeks as investors bought precious metals as an alternative to a weakening dollar.
The dollar fell against most major counterparts before Federal Reserve Chairman Ben S. Bernanke testifies in Congress after saying last month that policy makers are keeping open the option to increase bond purchases.
The dollar weakened before Bernanke explains the Fed’s monetary policy and the outlook for the economy in his semi- annual testimony today.
The Fed chairman said last month that the central bank is considering buying more bonds after policy makers extended their pledge to keep the benchmark interest rate at “exceptionally low levels” at least through late 2014.
The Fed has engaged in two rounds of asset purchases, totaling $2.3 trillion in so- called quantitative easing.
The euro rose toward its strongest in almost three months on speculation the European Central Bank’s allotment of three- year loans to banks today will spur demand for the region’s assets.
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