Filed under: Other issues, India, China, Commodities

Gold fell about $17 to $892.60 an ounce by midday Tuesday on expectations that the dollar will continue to rally against the euro, Bloomberg News reported.

Gold has fallen more than 4% in about a week. Independent currency trader Andrew Resnick, who does not trade gold but follows the market as part of currency market research, says the gold-as-investment-vehicle strategy is being challenged by the U.S. Federal Reserve’s efforts to stimulate the U.S. economy.

“Absent a growing U.S. economy, gold can serve not only as an inflation hedge, but as an investment,” Resnick said. “But the Fed’s interest rate has traders believing the U.S. economy will accelerate in the second half of 2008, which will increase demand for U.S. assets and force money out of gold and into these investments.” Resnick added that he does not have a trading position in gold.

Continue reading Gold falls below $900 as dollar rallies

Permalink | Email this | Comments

Share This

This entry was posted on Tuesday, February 5th, 2008 at 11:01 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.