Gold Drops for Second Day as Dollar Strength Crimps Metal Demand
Gold declined for the second straight session as a stronger dollar reduced demand for the precious metal as an alternative investment.
The dollar gained as much as 0.3 percent against a basket of currencies amid growing concern that Europe’s three-year-old debt crisis is weighing on the economy. Last week, the dollar rose 0.6 percent, while gold retreated 0.7 percent.
“It’s the dollar that’s pushing gold lower,” Lance Roberts, the chief executive officer of Streettalk Advisors LLC in Houston, said in a telephone interview.
Gold futures for December delivery fell 0.2 percent to settle at $1,708.70 an ounce at 1:45 p.m. on the Comex in New York. The price has slipped 3.7 percent this month.
CME Group Inc., the owner of Comex, said the New York trading floor was closed today as Hurricane Sandy headed toward the city.
Silver futures for December delivery dropped 0.9 percent to $31.745 an ounce on the Comex.
Platinum futures for January delivery declined 0.8 percent to $1,533.90 an ounce on the New York Mercantile Exchange.
Palladium futures for December delivery fell 0.9 percent to $589.75 an ounce on the Nymex.
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