Gold declined for the first time in three days as a stronger dollar crimped demand for the precious metal as an alternative investment.
The dollar gained as much as 0.4 percent against a basket of six currencies on concern that President Barack Obama will struggle to convince Congress to avert the so-called fiscal cliff after his re-election. European Central Bank President Mario Draghi said the region’s crisis is affecting Germany. The Standard & Poor’s GSCI Spot Index of 24 commodities slumped as much as 2.6 percent
“We are seeing a risk-off day today,” Donald Selkin, the New York-based chief market strategist at National Securities Corp., which manages about $3 billion of assets, said in a telephone interview. “There is a sell-off across the board.”
Gold futures for December delivery slid 0.1 percent to settle at $1,714 an ounce at 1:53 p.m. on the Comex in New York. Earlier, prices touched $1,733, the highest for a most-active contract since Oct. 19.
Silver futures for December delivery declined 1.2 percent to $31.661 an ounce in New York.
On the New York Mercantile Exchange, platinum futures for January delivery fell 1.2 percent to close at $1,539.50 an ounce. Palladium futures for December delivery slipped 1.6 percent to $610.35 an ounce.