Gold News

15/08/07: Gold still under pressure from US dollar

A strengthening US dollar applied further pressure to gold on Wednesday (August 15th).

Despite the threat, gold held relatively steady, but analysts have pointed out that further gains for the dollar are likely to hit the price of the precious metal.

According to Bloomberg, the US dollar has climbed by 1.7 per cent against the euro since August 9th, after central banks injected billions of dollars to offset problems associated with the sub-prime mortgage crisis.

Reuters has reported that gold fell $1.20 on Tuesday due to the firming US dollar, but it actually remained relatively steady on Wednesday.

Marty McNeill, a trader at R F Lafferty, told Bloomberg: "The dollar strength is bringing gold lower. It's dollar-related. The injection of funds helps keep the dollar steady."

Bloomberg has further reported that gold futures for December delivery fell by 0.2 per cent to $679.70 an ounce on the Comex division of the New York Mercantile Exchange.

In August, gold has lost approximately one per cent in total, with shaky global markets adding to investor uncertainty.

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