Gold falls as stronger dollar curbs investment demand

Apr 08, 2013 |

Bloomberg

London

Gold today dropped as holdings in exchange-traded products declined and the dollar climbed, curbing demand for the metal as an alternative asset.

The gold fell by 0.2 per cent to $1,577.51 an ounce after sliding 0.3 per cent. Silver also fell 0.2 per cent to $27.27 an ounce.

Gold holdings in the SPDR Gold Trust, the biggest ETP backed by bullion, fell 0.9 tonnes to 1,205.31 tonnes as of April 5, the lowest since June 2011.

The US Dollar Index, a gauge against six major counterparts, rallied 0.4 per cent today as the yen dropped to the lowest level since 2009. Earlier, the metal rose to 1,583.20 dollar, the highest price since April 2, extending a 1.7 per cent rally on April 5 after US jobs data missed economist expectations, bolstering the case for prolonged central-bank stimulus.

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