Gold prices rise to 4-week highs as dollar declines

Gold prices rose in European trade for another session, almost hitting four-week highs as the dollar loses ground against major rivals. 

Haven demand is climbing on the precious metal as well amid concerns about global recession and US-China relations. 

Prices Today

Gold prices rose 1.1% to $1,783 an ounce, after rising 0.2% yesterday, edging near four-week highs at $1,788.

The Dollar

The dollar index fell 0.2% today, resuming the decline to near four-week lows against major rivals, ahead of major US labor data today.

The data will offer strong clues on the US economy's health during the third quarter and will provide clues on the Fed's next move.

Estimates

Analysts expect gold prices to keep gaining ground amid ongoing short-term risks, even as US treasury yields rebound. 

The SPDR

Gold holdings at the SPDR Gold Trust fell 2.9 tones yesterday to a total of 1,000 tones, the lowest since January 20.