Gold falls on dollar in Asian trade
Wednesday, 30 December 2009
SINGAPORE, Dec 29 (Commodity Online): Gold prices fell in Asian trade Tuesday as the strengthened dollar hits it appeal as an alternative investment.
Spot gold was seen trading at $1102.78 an ounce at 11.30 a.m Singapore time while February contract at the Comex in New York was at $1102.84 an ounce at the same time.
Analysts said the dollar is likely to strengthen against the euro for a second day before a report that economists forecast will show US consumer confidence grew this month.
Gold typically moves inversely to the dollar. Bullion has risen about 25 per cent this year as investors sought protection against the prospect of currency debasement and inflation.
However, gold slid 6.4 per cent in December as the Dollar Index, the six-currency basket, gained 3.7 per cent.
On Monday, the most active gold contract for February delivery gained $3.10 , or 0.3 per cent, to finish at $1,107.90 an ounce.
The precious yellow metal remained highly volatile this year as it closed at a record high of $1215.30 on December second, well up from its low of about $817 per ounce in January.
Spot gold was seen trading at $1102.78 an ounce at 11.30 a.m Singapore time while February contract at the Comex in New York was at $1102.84 an ounce at the same time.
Analysts said the dollar is likely to strengthen against the euro for a second day before a report that economists forecast will show US consumer confidence grew this month.
Gold typically moves inversely to the dollar. Bullion has risen about 25 per cent this year as investors sought protection against the prospect of currency debasement and inflation.
However, gold slid 6.4 per cent in December as the Dollar Index, the six-currency basket, gained 3.7 per cent.
On Monday, the most active gold contract for February delivery gained $3.10 , or 0.3 per cent, to finish at $1,107.90 an ounce.
The precious yellow metal remained highly volatile this year as it closed at a record high of $1215.30 on December second, well up from its low of about $817 per ounce in January.