Gold declines as dollar gains strength
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Xinhua, November 10, 2011
Gold futures on the COMEX Division of the New York Mercantile Exchange on Wednesday retreated after it failed to hold the 1,800-dollar mark, representing the first decline in the latest three trading days, as a stronger dollar pared the appeal of gold as an alternative investment.
The most active gold contract for Dec. delivery declined 7.6 U. S. dollars, or 0.4 percent, to 1,791.6 dollars per ounce, although it topped the 1,800-dollar mark during the intraday trading.
Market analysts said that dollar's rally has held back the advancing gold, as a stronger dollar makes the metal less attractive for investors with other currencies. The dollar index, which measures the price of dollar against six other currencies, traded around 77.9, up 1.6 percent from the prior trading day.
Besides, gold was unable to hold the psychological 1,800-dollar level on Wednesday and the failure may have caused traders to take profits, said Mike Daley, a senior gold analyst with PFGBEST Group.
Silver for Dec. delivery dropped 79.2 U.S. cents, or 2.25 percent, to 34.361 dollars per ounce. Platinum for Jan. delivery also shed 29.4 dollars, or 1.76 percent, to 1,643.7 dollars per ounce.
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