Gold Rises To Multi-Week High As Dollar Slips

June gold settled at $923.90, up $10.40 for the session. This marks its best close since April 1.

Gold received a boost as the dollar extended lows against other major currency. The dollar found a new 7-week low versus the euro and a four-month low against the sterling. Gold usually moves opposite the dollar as traders tend to hedge a weak greenback with the precious metal.

On the economic front, a Commerce Department report showed that the trade deficit widened to $27.6 billion in March from a revised $26.1 billion in February. Economists had expected the deficit to widen to $29.0 billion compared to the $26.0 billion originally reported for the previous month.

The Treasury Department revealed its Treasury Budget earlier this afternoon, showing a deficit of $20.9 billion for April, a record low for the month, which has posted surpluses since 1983, bolstered by tax revenues.

The figure was largely in line with the expectations of analyst, who predicted that the deficit would come in at $20.0 billion amid record government spending measures.

June-stamped gold finished Monday at $913.30, down $1.40 on the session. But the metal had rallied more than $25 last week.

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