Gold Down on Strong Dollar And Lower Metal Demand

Gold traded near a two-week low in New York as a strengthened dollar cut demand for an alternative investment and on speculation physical buying slowed. Platinum was little changed as a mine strike in South Africa continued.
The Bloomberg U.S. Dollar Index, a measure against 10 currencies, was little changed after reaching the highest since Sept. 18 yesterday. Physical demand from China “weakened markedly” in the past few days, Mumbai, India-based AnandRathi Commodities Ltd. said today in a report.
Gold is set for the first annual drop in 13 years as some investors lost faith in the metal as a store of value. The Federal Reserve last week maintained its $85 billion in monthly bond purchases, noting that there are signs of “underlying strength” in the economy. The central bank will start cutting debt buying in March, according to an Oct. 17-18 Bloomberg News survey of economists.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza