Skip to content
Subscriber Only

Gold Drops From Two-Month High as Stronger Dollar Crimps Demand

Gold dropped from a two-month high as a stronger dollar reduced demand for the precious metal as an alternative investment.

The Bloomberg Dollar Index, a gauge against 10 major currencies, rose as much as 0.3 percent. Gold prices have fallen 17 percent this year as the greenback climbed 4.2 percent and amid concern that the Federal Reserve will begin cutting its stimulus measures. Minutes released on Aug. 21 showed policy makers were comfortable with Fed Chairman Ben S. Bernanke’s plan to taper this year if the economy strengthens.