Gold prices fall for 4th day on stronger dollar
Stevenson JacobsGold prices extended their losses for a fourth session Thursday as the dollar pushed higher against the euro, prompting traders to pull money out of precious metals and other commodities. Silver and copper also fell.
The dollar rose to a 2008 high against the 15-nation euro after the European Central Bank held its interest rate steady and cut growth forecasts for the euro zone. The dollar has rallied in recent days as concerns increase that a U.S. economic slowdown is spreading overseas and hampering economies in Europe, Japan and elsewhere.
A stronger dollar encourages investors to shift funds out of commodities like gold and silver, which are considered safe-haven investments used to hedge against inflation.
Gold for December delivery fell $5 to settle at $803.20 an ounce on the New York Mercantile Exchange, after earlier falling to $798.10.
"The short-term direction in gold remains pointed to lower levels, and selling could intensify if $790 is breached this week," Jon Nadler, analyst with Kitco Bullion Dealers Montreal, said in a note.
Other precious metals also traded lower on the Nymex. December silver shed slightly less than a penny to settle at $12.94 an ounce, while December copper fell 4.6 cents to settle at $3.266 a pound.
In energy markets, crude oil closed at its lowest level in five months as a stronger dollar and a drop in U.S. gasoline supplies convinced traders that prices still have further room to fall.
Light, sweet crude for October delivery fell $1.46 to settle at $107.89 a barrel on the Nymex. It was crude's fifth straight decline and the lowest settlement for a front-month contract since April 1.
In other Nymex trading, heating oil futures fell 5.51 cents to settle at $3.0237 a gallon, while gasoline futures fell 2.64 cents to settle at $2.7404 a gallon.
In agriculture markets, major grain prices traded mixed on the Chicago Board of Trade.
Wheat for December delivery rose 2.25 cents to settle at $7.77 a bushel, while December corn rose 2.25 cents to settle at $5.645 a bushel.
November soybeans shed 16.5 cents to settle at $12.35 a bushel