Gold falls with oil as dollar turns higher
Published: Tuesday, 28 Jul 2009 10.50AM
NEW YORK (MarketWatch) -- Gold futures fell below $950 an ounce Tuesday as
declining oil prices and a stronger dollar reduced the metal's appeal as a
hedge against potential inflation and a weaker currency.
The U.S. dollar reversed earlier losses, turning higher against most of its
major rivals. Crude oil declined in the first session in four, moving below $68
a barrel. Also weighing on gold prices, demand for exchange-traded funds
remained weak.
"The dollar plus oil prices remain the major force behind gold markets," said
Jon Nadler, senior analyst at Kitco Metals Inc. "Other than that, we've seen
retail investment demand has really simmered down, and we've also seen these
ETFs leaking a bit of gold here and there."
In the currency market Tuesday, the dollar index which tracks the value of the
greenback against a basket of major rivals
