Gold fell in New York as the dollar climbed, reducing the appeal of the precious metal as an alternative investment. Platinum and silver also declined.
The dollar gained against a weighted basket of six major currencies, extending a two-week rally. Precious meals often move in the opposite direction of the greenback. Gold fell 18 percent last month as the dollar rallied 7.8 percent.
``The dollar has the strength that it does because people are pulling their money home and going to cash,'' said Frank Lesh, a trader at FuturePath Trading LLC in Chicago. ``Gold is just reacting to the dollar. There's a loss in demand for all metals and commodities.''
Gold futures for December delivery fell 50 cents to $742 an ounce on the Comex division of the New York Mercantile Exchange. Earlier, the price dropped as much as 1.7 percent.
Silver futures for December delivery declined 16 cents, or 1.7 percent, to $9.33 an ounce.
Platinum futures for January delivery tumbled $24.50, or 2.7 percent, to $820.60 an ounce on the Nymex. Palladium for December delivery rose $1.05, or 0.5 percent, to $217.70 an ounce."
Tuesday, 18 November 2008
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