BS: Gold Resumes Fall as Dollar Advances; Silver Halts Drop
Gold futures fell as the dollar strengthened, curbing demand for the metal as an alternative investment. Silver halted declines.
The dollar climbed to the highest in 11 months against the euro and was the strongest against the yen since January. Fed Chair Janet Yellen said on Aug. 22 that policy makers must be certain the U.S. economy is on a solid footing before boosting interest rates and the debate is shifting toward when to scale back extraordinary accommodation.
“The market is focused on tightening U.S. monetary policy, which is pressuring gold,” said Sun Yonggang, a macroeconomic strategist at Everbright Futures Co. in Shanghai. “We caution that there still exist risks to financial markets.”
VIDEO: Yen May Fall to 107 Per Dollar in 2014: Henderson
Gold for December delivery dropped 0.1 percent to $1.279.60 an ounce by 7:23 a.m. on the Comex in New York. Prices rose 0.4 percent on Aug. 22.
Silver rose 0.1 percent to $19.47 an ounce after falling the last two days of last week.
To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net
VIDEO: Yen May Fall to 108 Per Dollar by Year End: Yamada
To contact the editors responsible for this story: James Poole at jpoole4@bloomberg.net Claudia Carpenter, Lars Paulsson
