Gold declines as investors seek the dollar as a safe haven

The Dollar Index, which tracks the greenback against six major trading partners, rose for a second day

The Dollar Index, which tracks the greenback against six major trading partners, rose for a second day

Gold fell in Asia, dropping below $900 an ounce as a rally in the dollar curbed investors’ demand for the metal as an alternative investment. Holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, were at 1,104.45 metric tons for a third day yesterday.

The Dollar Index, which tracks the greenback against six major trading partners, rose for a second day, after gaining as much as 1.3 percent yesterday, the most in a month. “Investors flocked mainly into the U.S. dollar and other safe-haven currencies, rather than into gold,” HSBC Securities analyst James Steel wrote in an e-mailed note. “The subsequent rally in the U.S. dollar weighed on gold prices.” Gold is trading at $48.77 as of 9:20am, London Time. Gold’s Pool-Position is 46% Long, meaning that most Finotec traders are selling the precious metal.

Derivative and forex trading broker Finotec is a division of leading real-time Internet trading company Finotec Trading Inc, which pioneered the world of online forex trading in 1998. After launching our revolutionary forex online trading platform in 2001, we continued to improve our services and now serve clients of all sizes in many locations worldwide, offering them real-time Internet trading not only in currencies, but also in options, commodities,... More