Nov. 6 (Bloomberg) -- Gold, little changed in Asia, is poised for its strongest weekly advance in a month as signs of economic recovery sap demand for the dollar, increasing the appeal of the precious metal.
Bullion, up 24 percent this year, is approaching $1,100 an ounce for the first time as investors seek to protect their wealth from the threat of inflation and the debasement of the U.S. currency. Asian stocks rose after better-than-forecast U.S. unemployment and productivity data lifted the Dow Jones Industrial Average to its highest in two weeks.
“The preference for gold continues as the global recovery gathers momentum and as the dollar stays out of favor,” said Yu Kyung Kyu, a trader with Eugene Investment & Futures Co. in Seoul. “Still, we may witness market players reluctant to go too aggressive just ahead of the key $1,100 level.”
Gold for immediate delivery traded at $1,089.90 an ounce at 10:03 a.m. in Singapore, from $1,090.30 yesterday and $1,045.40 at the end of last week. The metal touched an all-time high of $1,097.72 on Nov. 4 and has gained 4.2 percent this week, the most since the week ended Oct. 9.
The MSCI Asia Pacific Index of regional shares rose 0.6 percent. The dollar traded at $1.4864 per euro in Tokyo from $1.4871 in New York and is down 1 percent this week.