Gold declines for second day as dollar gains strength
Gold declined for a second day in London as a stronger dollar curbed demand for the precious metal as an alternative investment.
The dollar gained for a second day against the euro before data that may show investor confidence in Germany is near the lowest level in 21 months. Gold, which reached a record $1,387.35 an ounce on Oct. 14, usually moves inversely to the greenback.
The U.S. currency slipped to an eight-month low on Oct. 15 after Federal Reserve Chairman Ben S. Bernanke said additional monetary stimulus may be warranted, BusinessWeek reports.
Oil prices slipped for a third day. Extending Thursday's reversal after faltering below 84.43 (a 5-monht high made on October 7), the front-month contract for WTI crude oil fell to as low as 80.56 today. Gold price lost ground as the dollar recovered and the benchmark contract plunged to 1356.2 today.
Speculations on Fed's easing moderated ahead of speeches from Atlanta Fed Dennis Lockhart and Chicago Fed's Charles Evan later this week. On Friday, Fed Chairman Ben Bernanke hinted 'further actions' will be needed to boost the economy, International Business Times informs.
