Gold declines as dollar rebounds
Sunday, 9 August 2009
LONDON, Aug.8 (Bloomberg): Gold fell for the third straight day as an unexpected drop in US unemployment drove the dollar higher, damping the appeal of the precious metal as an alternative investment. Silver rose.
The dollar gained as much as 1.3 per cent against a basket of six major currencies. The jobless rate in June fell to 9.4 per cent, the first decline since April 2008. Economists forecast an increase to 9.6 per cent.
Gold futures for December delivery fell $3.40, or 0.4 per cent, to $959.50 an ounce on the Comex division of the New York Mercantile Exchange. The metal dropped by the same amount in each of the previous two days. The price gained 0.4 per cent this week.
Bullion for immediate delivery dropped $8.52, or 0.9 per cent, to $954.73 at 2:39 p.m. New York time.
Gold may advance next week as investors seek an alternative to the dollar, according to a Bloomberg News survey. On Aug. 5, the dollar touched an 11-month low against the currency basket. Eleven of 20 traders, investors and analysts said bullion would gain. Five forecast lower prices and four were neutral.
Silver for September delivery rose 2.3 cents, or 0.2 per cent, to $14.668 an ounce in New York.
The dollar gained as much as 1.3 per cent against a basket of six major currencies. The jobless rate in June fell to 9.4 per cent, the first decline since April 2008. Economists forecast an increase to 9.6 per cent.
Gold futures for December delivery fell $3.40, or 0.4 per cent, to $959.50 an ounce on the Comex division of the New York Mercantile Exchange. The metal dropped by the same amount in each of the previous two days. The price gained 0.4 per cent this week.
Bullion for immediate delivery dropped $8.52, or 0.9 per cent, to $954.73 at 2:39 p.m. New York time.
Gold may advance next week as investors seek an alternative to the dollar, according to a Bloomberg News survey. On Aug. 5, the dollar touched an 11-month low against the currency basket. Eleven of 20 traders, investors and analysts said bullion would gain. Five forecast lower prices and four were neutral.
Silver for September delivery rose 2.3 cents, or 0.2 per cent, to $14.668 an ounce in New York.