Private wealth in gold 'supported by US uncertainty'

Private wealth invested in gold declined slightly today (August 10th) against a broadly strengthening dollar, as the value slipped below $1,200 an ounce in Europe.

Reuters reported uncertainty ahead of a monetary policy meeting of the US Federal Reserve due later on Tuesday helped hold the price of the precious metal relatively stable, so private wealth in the commodity should not have lost much ground.

Commerzbank analyst Daniel Briesemann remarked: "My colleagues on the Forex side think interest rates will stay at very low levels … In the short-term that will definitely help the gold price via a weaker dollar."
Gold reached a 21-day high last week but eased back today, which had a positive effect on buying in India, the country with the largest appetite for the metal.

The strengthening dollar also had a negative effect on the pound, as it lost 0.5 per cent of its value against the US currency, trading down at 08:26 BST to sell for $1.5815. ADNFCR-2318-ID-800019131-ADNFCR