Gold futures fell for the second straight day as a rebound by the dollar crimped demand for the precious metal as an alternative asset.
The greenback rose for the first time in four sessions against a basket of 10 currencies. Yesterday, the gauge touched a six-month low. Gold has gained 8.3 percent this year as the dollar dropped 1.5 percent. Federal Reserve Chair Janet Yellen is due to testify today to the Joint Economic Committee of the U.S. Congress.
“The dollar showing some strength is keeping gold down,” David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview. “Investors are waiting on the sidelines before Yellen’s testimony.”
Gold futures for June delivery fell 0.5 percent to $1,302.10 an ounce at 9:39 a.m. on the Comex in New York. Yesterday, the price dropped 0.1 percent. On May 5, the metal reached $1,315.80, the highest in almost three weeks, as escalating turmoil in Ukraine boosted demand for a haven.