Gold Down to $1213 on Economic Optimism

Gold fell on Wednesday as the dollar climbed to levels not seen in four years and global shares rebounded, while investors remained cautious ahead of U.S. economic data due later in the week.

Bullion’s safe-haven appeal dropped after data showed sales of new U.S. single-family homes surged in August and hit their highest level in more than six years, offering confirmation that the housing recovery remains on course. The dollar index against a basket of currencies rose 0.4 percent and touched highs last seen in July 2010.

“A stronger dollar is a fairly consensus view as well as higher U.S. Treasury yields … the Fed rhetoric lately has been helping as well, and for precious metals it means that the outlook remains poor,” Credit Suisse analyst Karim Cherif said.

CNBC

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