Reply #100: Gold rises as investors use softer dollar to buy

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http://www.reuters.com/article/2011/05/18/us-markets-precious-idUSTRE74F62H20110518

(Reuters) - Gold was set for its largest one-day rise in over a week on Wednesday, after a modest retreat in the dollar encouraged a steady stream of buyers, while oil and other commodity prices also rebounded.

Prices are down over 4 percent this month, with investor sentiment toward the precious metal turning more cautious as gold holders worried it may struggle to rise significantly after hitting record highs this month.

Spot gold was bid at $1,496.90 an ounce at 1412 GMT, against $1,484.85 late in New York on Tuesday. U.S. gold futures for June delivery rose $17.40 an ounce to $1,497.40.

Gold demand was supported by the dollar's slip against the euro as the single currency recovered from the seven-week low it hit earlier this week.