Gold Falls as Dollar Rally Curbs Demand for Precious Metal as Alternative
Gold fell for the third straight session as a strengthening dollar eroded the appeal of the precious metal as an alternative asset.
The euro fell to the lowest in two months against the dollar on speculation that Europe’s debt crisis will spread. Investors also sought the U.S. currency as a haven amid concern that the conflict between North Korea and South Korea will escalate. Before today, gold had gained 24 percent this year, touching a record $1,424.30 an ounce in New York on Nov. 9.
“We are seeing people turn to the dollar and shedding risk assets,” said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago. “Gold is having a tough time along with other risk assets.”
Gold futures for February delivery fell $3.90, or 0.3 percent, to $1,360.40 an ounce at 10:09 a.m. on the Comex in New York. The metal lost 1.1 percent in the previous two sessions.
Silver futures for March delivery dropped 7.2 cents, or 0.3 percent, to $26.70 an ounce on the Comex. Before today, the metal jumped 59 percent this year.
Palladium futures for December delivery rose $1.25, or 0.2 percent, to $680.10 an ounce on the New York Mercantile Exchange. Before today, the price surged 66 percent this year. Platinum futures for January delivery fell $8.20, or 0.5 percent, to $1,637 an ounce. The metal has climbed 12 percent this year through Nov. 26.
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