Tuesday, October 21, 2008

Gold falls 2% as dollar strengthens

Gold is now $112.00 lower than the day we posted our first "Now's not the time" story. For our thoughts on the untimeliness of gold (for now) use the 'Search Blog' box, keyword, gold.
From MarketWatch:
Gold futures fell Tuesday as a stronger U.S. dollar reduced the precious metal's appeal as an alternative investment.
Continued expectations of a global slowdown also weighed on crude oil prices, and other commodities, reducing demand for gold as an inflation hedge.
Gold for December delivery lost $17, or 2.5%, to $772.80 an ounce in early trade.
The dollar rose to the highest in 19 months against the euro, as currency markets focused on the U.S. financial rescue package and further stimulus hoped to provide a needed boost to the economy....MORE
From Kitco, spot prices:
Click to enlarge
Click to enlarge