Gold's attractiveness hit by stronger dollar
Strength in the dollar will decrease the attractiveness of gold among those looking to invest their
private wealth, it has been suggested.
According to Bloomberg, the value of the precious metal has been hit by the greenback’s climb and by news that China will not be using the commodity as its main reserve investment.
Li Ning of China International Futures told the news agency that this may have a ’short-term negative impact’ on the value of gold.
’Medium to long term, gold continues to be supported by investors looking to hedge against weakness in currencies like the euro and the dollar,’ he added.
By 14:24 local time in Singapore, gold was priced at $1,122.18 (£747.211) per ounce, having earlier fallen by as much as 0.3 per cent.
And the dollar was up by 0.2 per cent against six of its major global counterparts, including the euro and the pound.
The drop in the commodity’s value has echoed a trend seen last week, when strength in the dollar hampered its attractiveness as a hedge against inflation.
