Gold Falls as Strengthening Dollar Curbs Investor Demand
Gold fell to a six-week low in London on speculation a stronger dollar will curb demand for an alternative investment. Other precious metals declined.
The U.S. Dollar Index, a measure against six major trading partners, climbed to a one-week high. Bullion has erased gains made after the Federal Reserve announced a third round of debt- buying on Sept. 13. The Fed concludes a meeting tomorrow. Stimulus measures taken by central banks fromEuropetoChinahelped drive gold to a 10-month high of $1,796.05 on Oct. 5.
“The dollar has been stronger and that’s one of the reasons why gold has been under pressure,”Afshin Nabavi, a senior vice president at bullion refiner MKS Finance SA in Geneva, said today by phone. “It could be a healthy correction. It’s just a matter of time before gold can reach $1,800 an ounce.”
Bullion for immediate delivery fell as much as 1 percent to $1,712.02 an ounce, the lowest since Sept. 7, and was at $1,713.90 by 11:11 a.m. in London. December-delivery futures declined 0.7 percent to $1,714.90 on the Comex in New York.
Gold at the morning “fixing,” used by some mining companies to sell output, fell to $1,717 in London from $1,726.75 yesterday afternoon.
TheBank of Japan (8301)will next week announce its policy decision and issue revised economic projections for the 2012 and 2013 fiscal years and its first set of forecasts for 2014.
Japan’s Economy Minister Seiji Maehara, who has been calling for more action from the central bank, said today he may attend the BOJ’s next meeting on Oct. 30 if his schedule permits. Maehara was present at the previous gathering ended Oct. 5, the first minister to do so for more than nine years.
Silver for immediate delivery slid 1.8 percent to $31.825 an ounce after falling to $31.7213 yesterday, the lowest since Sept. 3. Platinum was down 1.6 percent at a six-week low of $1,583.49 an ounce. Palladium fell 2 percent to $612.50 an ounce. It reached $611, the lowest since Aug. 31.