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Gold advances for second day as silver extends bull-market rally
[SINGAPORE] Gold climbed for a second day as the US dollar's slide to a 10-month low fueled demand for alternative investments. Silver extended gains after entering a bull-market.
Bullionfor immediate delivery rose 0.3 per cent to US$1,254.10 an ounce at 9:20 am in Singapore after gaining 1.4 per cent Tuesday, the most since April 7, according to Bloomberg generic pricing.
Silver increased 0.6 per cent to US$17.03 an ounce after settling more than 20 per cent higher from a recent closing low in December, meeting the common definition of a bull market.
Gold has rallied 18 per cent this year as financial-market turmoil and global economic concerns drove demand for haven assets.
The Bloomberg Dollar Spot Index fell to the weakest level since June on Tuesday after a report showed new-home construction in the US slumped.
Silver, used mainly in industry, has risen 23 per cent this year.
"The US dollar collapse seen in recent months has been a huge boon for both gold and silver," said Angus Nicholson, a market analyst at IG Ltd in Melbourne.
"As long three out of the four biggest central banks are still in easing mode, that is still likely to provide support to gold and silver even if the US does manage to slowly to continue on its rate-hiking cycle," he said, referring to policy makers in the US, Europe, Japan and China.