April 20 (Bloomberg) -- Gold and silver rebounded in Asia as the dollar headed for its fourth consecutive weekly decline against the euro, boosting demand for the precious metal as an alternative investment.
Gold generally moves counter to the dollar, which traded within a cent of its record low versus the euro on speculation slowing U.S. growth will cut the currency's appeal. Gold yesterday had its biggest one day fall since March 2.
``Gold seems to benefiting from the weakness in the U.S. dollar and it has been pushed around by currency movements in recent times,'' said David Moore, commodities strategist at Commonwealth Bank of Australia in Sydney. ``Fundamentally, there is evidence that investors are long gold and that does mean it can be vulnerable to occasional pull-backs.''
Gold for immediate delivery rose as much as $2.85, or 0.4 percent, to $685.80 an ounce and traded at $684.95 at 12:09 p.m. Mumbai time. Silver for immediate delivery gained as much as 11 cents, or 0.8 percent, to $13.79 an ounce and traded at $13.77 at 11:46 a.m. in Mumbai.
``We will probably see some consolidation at current levels before gold starts moving northwards again,'' said Chirag Sheth, analyst at STCI Commodities Ltd. in Mumbai. Gold prices are likely to rise to $700 an ounce in the first week of May, Sheth said.
In Japan, gold for delivery in February 2008 gained 15 yen, or 0.6 percent, to 2,638 yen a gram ($690 an ounce) at 3:18 p.m. local time on the Tokyo Commodity Exchange.
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