Gold Steady at $1215 as U.S. Dollar Rises on Housing Gain

Gold futures fell as the dollar rallied to a four-year high, damping demand for the precious metal as an alternative investment. Platinum extended a slump to a nine-month low.

The greenback rose to the highest since June 2010 against a basket of 10 currencies as the U.S. reported a surge in new-home sales in August. This quarter, gold has slumped 7.8 percent, while the dollar gained 5.6 percent.

Gold touched an eight-month low of $1,208.80 an ounce on Sept. 22 after the Federal Reserve raised its U.S. interest-rate projection for 2015, crimping demand for a hedge against inflation. The metal has also declined as equities surged to a record last week.

Bloomberg

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