Mineweb - GOLD NEWS - Gold continues its rise on weak dollar and short covering
Gold rose for the third straight day to hit a new eight-week high above $942 per ounce on Thursday, buoyed by firmness in oil prices and the dollar's recent slide to its lowest level in nearly five months.
But gains were mainly driven by funds buying U.S. gold futures, resulting in arbitrage cash gold purchases, while a rise in Asian currencies against the dollar capped the price of gold denominated in regional currencies, traders said.
"It's up mainly because of short-covering in the market,"said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong. "The dollar is weakening again and the oil price is up,which favours gold for a little while."