Gold to Fall as Stronger Dollar Curbs Investment Demand
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Gold futures declined for the first time in three sessions as a European Central Bank plan to buy bonds as part of an economic-stimulus program lowered demand for the precious metal as a hedge against inflation.
The ECB was said to propose unlimited government-debt purchases that will be sterilized, ensuring a neutral impact on the money supply by removing funds from elsewhere in the banking system. Yesterday, gold reached $1,701.60 an ounce, the highest since March 13.