BLBG: Gold Falls in New York as Dollar Climbs on Deepening Recession
June 22 (Bloomberg) -- Gold prices fell in New York as the dollar strengthened after the World Bank forecast a deeper global economic contraction this year, curbing the appeal of the metal as an alternative asset.
Gold futures for August delivery dropped $12.50, or 1.3 percent, to $923.70 an ounce at 8:23 a.m. on the New York Mercantile Exchange’s Comex division. The U.S. Dollar Index, a six-currency gauge, gained as much as 0.7 percent after the Washington-based lender said the world economy will shrink 2.9 percent in 2009, more than an earlier forecast for a 1.7 percent decline.
