Gold Futures Rally on Sag in Dollar, Risks to ECB Growth Outlook

Gold is up 19 percent this year as demand for havens surges with gyrations in financial markets and mounting concerns on global economic growth. Draghi said at a press conference Thursday that the recovery in the euro area continues to face hurdles including subdued demand in emerging markets and volatile financial markets.

“You had the dollar go up and then down, and gold followed the dollar’s lead,” Bart Melek, the head of commodity strategy at TD Securities in Toronto, said in a telephone interview. “Gold has an inverse relationship to the dollar, typically, especially in the short term.”

Gold futures for April delivery added 0.7 percent to $1,266.30 an ounce at 10:19 a.m. on the Comex in New York. The metal lost 1 percent over the prior three days .... http://www.bloomberg.com