Gold May Fall as Stronger Dollar, China Rate Rise Curb Demand
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Gold may decline in New York as a stronger dollar and higher interest rates in China curb demand for an alternative investment.
China said it will raise interest rates from tomorrow for the third time this year after inflation accelerated to the fastest pace since July 2008. The dollar gained against the euro after Moody’s Investors Service cut Portugal’s credit rating to junk status, stoking speculation the nation will need a second bailout. Gold typically moves counter to the greenback.