Gold Prices Slide on Stronger Dollar; Gold Prices Hit Lowest Level Since June 9
Gold prices slid Monday, as a stronger U.S. dollar led investors to sell the precious metal.</br></br>Gold for December delivery, the most actively traded contract, fell $13, or 1%, to $1,254.30 a troy ounce on the Comex division of the New York Mercantile Exchange, the lowest close for the precious metal since June 9.</br></br>Prices for gold have been under pressure from a burgeoning dollar, with investors flocking to the U.S. currency as the economic recovery gains momentum and on expectations of a rise in interest rates next year. A rising dollar is bad news for gold, an asset many investors buy to offset the risk of dollar weakness. In addition, higher interest rates make gold a less attractive investment, as the metal costs money to hold and struggles to compete with investments that offer yield during times of tightening monetary policy.</br></br>On Monday, the dollar was up 0.8% against the yen at 105.91, a six-year high. The British pound was down 1.3% against the U.S. currency at $1.61. Gold prices are down about 5% from July highs.</br></br>"The stronger dollar and weak U.S. inflation are keeping investors on the sidelines," said James Cordier, a principal at Liberty Trading Group. "The landscape for gold is not bullish at all."