Strength in dollar causes gold to dip

An increase in the value of the dollar has caused the price of gold to fall for a fourth consecutive day.

At 14:00 local time in Singapore, the precious metal was down 0.5 per cent to $1,091.05 (£711.79) an ounce, as those with high levels of personal wealth moved away from the commodity as an alternative investment option.

The greenback was up 0.4 per cent on the dollar index - which measures the currency against six of its major counterparts - and Mizuho Corporate Bank’s Tetsuya Yoshii told the news source that the main factor in pushing the price of gold down is ’investor money looking for safe assets’.

Its price could decline by between $20 and $40, he was quoted as saying.

Futures in gold were also lower, with the metal for delivery in April falling in value by 0.5 per cent.

Earlier in the week, commodity expert Axel Rudolph told Bloomberg that gold’s recent rally is about to come to an end.ADNFCR-2318-ID-19636823-ADNFCR