Gold News

Gold Falls as the Dollar strengthens on the fear last week’s rally over –short

Gold Falls as the Dollar strengthens on the fear last week’s rally over –short

The U.S Dollar Index, a six-currency gauge of the greenback’s strength

Gold fell from an 18-month high in London as the dollar rebounded, curbing demand for the precious metal as an alternative investment. The U.S Dollar Index, a six-currency gauge of the greenback’s strength, gained as much as 0.6 percent after falling on Sept. 11 to the lowest level in almost a year. Gold, which reached $1,011.95 an ounce on Sept. 11, the highest price since March 2008, typically moves inversely to the dollar. Holdings of bullion in the SPDR Gold Trust, the biggest exchange-traded fund backed by the metal, were unchanged at 1,077.63 metric tons on Sept. 11, data on the company’s Web site showed. Gold is trading 995 as of 10:08am, London Time.