(Bloomberg) -- Gold fell from the highest prices since 1980 after a gain in the value of the dollar against the euro reduced the appeal of the precious metal as an alternative investment. Silver also dropped.
Gold generally moves in the opposite direction of the dollar, which rose from last week's record against the euro. Before today, gold gained 27 percent in 2007, reaching $811 an ounce on Nov. 2, as a weak dollar and record energy costs sparked demand for an inflation hedge.
``The dollar has been having a big effect on gold prices,'' said Nick Ruggiero, a trader at Eagle Futures Inc. in New York. ``There'll be some selling today because gold's had a strong rally, and the euro and crude are off their highs.''
Gold futures for December delivery fell $1.70, or 0.2 percent, to $806.80 an ounce at 8:59 a.m. on the Comex division of the New York Mercantile Exchange. The price reached $873 an ounce Jan. 21, 1980, the highest ever.
Silver futures for December delivery declined 3.4 cents, or 0.2 percent, to $14.565 an ounce. Before today, the metal climbed 13 percent this year.
The dollar rebounded from a record $1.4528 against the euro. Crude-oil futures traded as low as $94 a barrel after reaching $96.24 on Nov. 1, the highest ever.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment