Gold Futures Drop as Dollar Rally, Lower Oil Curb Demand
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Gold futures capped the biggest decline in three weeks as a stronger dollar and plunging energy prices curbed demand for the metal. Silver plunged the most in 17 months.
Benchmark Brent crude yesterday fell the most in more than three years after the 12-nation Organization of Petroleum Exporting Countries kept its output target unchanged, cutting gold’s appeal as an inflation hedge. The dollar rose to a five-year high against a basket of 10 currencies on speculation that lower energy prices will boost the U.S. economy, paring demand for bullion as an alternative investment.