BLBG: Gold Prices in New York Drop Most in Two Months as Dollar Gains
April 16 (Bloomberg) -- Gold fell the most in two months as a stronger dollar reduced demand for the precious metal as an alternative asset.
The dollar rose as much as 0.5 percent against a basket of six major currencies, including the euro. Gold gained 24 percent in 2009 as the dollar fell 4.2 percent against the basket.
“There’s considerable strength in the dollar,” said Kevin Davitt, a senior market analyst at LaSalle Futures Group in Chicago. “You’re seeing the risk-aversion currencies up and that typically puts pressure on the metals.”
Gold futures for delivery in June dropped $22.50, or 1.9 percent, to $1,137.80 an ounce at 11:21 a.m. on the Comex in New York. A close at that price would be the biggest drop since Feb. 4.
