Gold, other commodities move higher, buoyed by falling dollar, rising stocks

Gold moves higher as dollar falls, stocks rally

NEW YORK — Gold prices and other commodities are higher, buoyed by a falling dollar and an increasingly upbeat outlook on the economy.

Positive news about banks’ balance sheets has driven investors into stocks and other more risky assets and away from the dollar, which is considered a safe haven. This has helped boost gold, which is seen as a hedge against inflation and a weak dollar.

As the economic outlook improves, gold prices stand to benefit. Investors believe inflationary pressures could resurface in the future as the recession fades and prices for all sorts of products rise on improved demand.

Gold for June delivery rose $6.70 to settle at $911 an ounce on the New York Mercantile Exchange.