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.