Gold Futures Drop for Second Day on Bets Dollar Will Rebound
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Gold futures fell for the second straight day on speculation that the Federal Reserve won’t ease U.S. monetary policy further, boosting the dollar and eroding the appeal of the precious metal as an alternative asset.
The greenback rose from a one-month low against a basket of six major currencies. Yesterday, Fed Chairman Ben S. Bernanke signaled that there won’t be a third round of so-called quantitative easing, and gold dropped 0.2 percent.