Stronger dollar causes gold to dip
Strength in the value of the dollar has caused the price of gold to fall during trading today, potentially limiting its attractiveness to those with high levels of personal wealth.
The Dollar Index - which measures the greenback against six of its major counterparts - has risen by as much as 0.2 per cent, Bloomberg reports, helping it to recover some of the losses that were seen yesterday.
And, as a result, gold dropped by as much as 0.4 per cent to $1,135.30 (£754.90), as many investors opted to sell off their stock after the rally of the past few days.
Credit Suisse’s Stefan Graber warned that the dip in value could be extended, stating that ’there are still some downside risks’ for the precious metal, notably a possible increase in interest rates in the US.
However, Graham Tuckwell of ETF Securities told Bloomberg’s television channel recently that gold is a good option to invest in during volatile trading conditions.
