Gold Prices Fall as Investors Eye Stronger Dollar
Thursday, December 31st, 2009Gold, other metals dip as dollar strengthens; Energy futures rise on drop in supplies
By SARA LEPRO
The Associated Press
NEW YORK
Gold and other metals slid further Wednesday as the dollar rose for a second straight day.
Gold for February delivery lost $5.60 to settle at $1,092.50 an ounce on the New York Mercantile Exchange.
Following a months-long trend of trading inversely with the dollar, gold fell as the ICE Futures U.S. dollar index gained 0.1 percent. The index is a widely used measure of the dollar’s performance against other currencies.
Gold is used as a hedge against inflation and a weaker dollar, so demand for the metal tends to diminish when the greenback is stronger.