Gold Declines to Three-Month Low in London as Dollar Rallies (GoldCore in BusinessWeek)
Feb, 08, 2010 | Business Week
Gold fell to a three-month low in London as the dollar’s rally cut bullion’s appeal as an alternative investment. Other precious metals slid. The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, climbed to a six-month high on concern widening budget deficits will stifle Europe’s economic recovery. Gold, which typically moves inversely to the U.S. currency, dropped the most in 14 months yesterday and is set for a fourth weekly decline.
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“Given the degree of macroeconomic risk in the world and particularly the real risk of a major sovereign default, gold will be seen by some as attractive at these levels,” GoldCore Ltd., a brokerage in Dublin, said in a report.