Gold fell in New York as a stronger dollar curbed the metal’s appeal as an alternative asset and some investors sold bullion to cover losses in equity markets.
The dollar rose as much as 0.3 percent against a basket of six major currencies while European and Asian stocks declined on mounting concern that China and the U.S. will accelerate plans to unwind stimulus measures as their economies rebound. Before today, gold rose 21 percent in the past year as the dollar tumbled 7.4 percent.
“Gold is on the defensive because of the dollar,” said Marty McNeill, a trader at R.F. Lafferty Inc. in New York. Gold futures for April delivery dropped $6.40, or 0.6 percent, to $1,093.10 an ounce at 10:25 a.m. on the New York Mercantile Exchange’s Comex unit.
The Dow Jones Stoxx 600 Index of European shares lost as much as 1.4 percent, falling to the lowest level in more than a month. It has slid 2.7 percent this year as the U.S. called for limits on risk-taking by banks and China moved to restrict lending and cool economic growth. U.S. equities fluctuated.
“If stocks continue to fall, people may have to liquidate their gold positions,” said Bernard Sin, the head of currency and metals trading at bullion refiner MKS Finance SA in Geneva.....Read the entire article.
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