By Moming Zhou, MarketWatch
NEW YORK (MarketWatch) -- Gold futures rose on Monday, as investors embraced more risk, pressuring the dollar, lifting stocks and helping crude-oil futures test new highs for the year above $79 a barrel.
Copper also gained more than 4% before giving back some gains after China estimated that its economy grew 9% in the third quarter.
Gold for December delivery, the most actively traded contract, rose $2.60, or 0.2%, to $1,054.10 an ounce on the Comex division of the New York Mercantile Exchange. The thinly traded October contract also gained 0.3% to $1,053.50. . . .
The dollar, which has been used as a safe-haven currency, sank further, while the euro rose 0.2% to $1.4942. The dollar index /quotes/comstock/11j!i:dxy0 (DXY 75.34, -0.30, -0.40%) lost 0.3% to 75.409. See Currencies.
A weaker dollar lifts the price of dollar-denominated commodities and heightens gold's appeal as a safe asset.
Crude-oil futures rose as much as $79.05 a barrel, a new high for the year. See Futures Movers.
Gold rose "with oil reaching a new high for the year above $79 a barrel, and the Federal Reserve signaling interest rates will stay near record lows for the foreseeable future, the beleaguered greenback fell to a 14-month low on the dollar index," said analysts at GoldCore in a note.
The dollar came under further pressure after the Federal Reserve Bank of New York clarified it has been testing reverse repurchase agreements for technical reasons, and that the tests should not be seen as hints of a tighter monetary policy. See full story.
Separately, Fed Chairman Ben Bernanke called for policy makers to watch for the restrengthening of unsustainable global imbalances driven by high levels of Asian exports and low U.S. savings rates as the global economy rebounds. See full story.
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