24
August
Gold Drops for Third Straight Day as Dollar's Gain Pares Investment Demand
24 August 2010 Bloomberg.com
Gold declined for a third day in London as a stronger dollar curbed demand for the precious metal as an alternative investment.
The dollar climbed to a six-week high against the euro before data forecast to show the U.S. housing market slowed and before a report tomorrow that may show German business confidence fell. Gold, which is trading 3.6 percent below a record, usually moves inversely to the U.S. currency.
“Commodity prices are weak as the dollar strengthens,” said Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter. “It is especially true in gold this morning.”
