Gold Looses Ground Against Dollar
Gold has recorded losses against the dollar as the American currency has finally gained some ground in relation to the euro and pound
Report filed under: Gold Investment » Gold Investment News
Mon, October 06, 2008 - 9:19 am EET
Gold slid nearly $4.00 on Monday, moving towards a two week low. Gold often works inversely to the dollar, which gained strength and reached a 13-month high against the euro.
Gold was trading at $890.90 an ounce, down by $3.90. If the trend for a rising dollar against the euro and pound continues further, downside pressure against gold is expected.
Investors also cashed in on recent gold rises and booked profits, withholdings in the world’s largest gold-backed ETF, the SPDR Gold Trust showing a drop to 739.95 tonnes as of October 6th from 755.26 last week.
Longer-term sentiment for the precious metal remains strong with many investors still opting to use gold as a safe haven during the current economic turmoil.