Gold prices slip

Gold prices slid Monday, as a stronger US dollar led investors to sell the precious metal. Gold for December delivery, the most actively traded contract, fell $13, or one per cent, to $1,254.30 a troy ounce on the Comex division of the New York Mercantile Exchange, the lowest close for the precious metal since June 9. Prices for gold have been under pressure from a burgeoning dollar, with investors flocking to the US currency as the economic recovery gains momentum and on expectations of higher interest rates sometime next year. A rising dollar is bad news for gold, an asset many investors buy to offset the risk of dollar weakness. In addition, higher interest rates make gold a less attractive investment, as the metal costs money to hold and struggles to compete with investments that offer yield during times of tightening monetary policy. On Monday, the US dollar was up 0.8 per cent against the yen at 105.91, a six-year high. The British pound was down 1.3 per cent against the US currency at $1.61. Gold prices are down about five per cent from July highs, according to skynews.com