Gold News & Info

Source: Marketwatch

New York— Gold futures fell Monday to their lowest level in more than three weeks as Russia's vocal support for the dollar lifted the U.S. currency, reducing the precious metal's investment appeal. At the Group of Eight meeting in Lecce, Italy, Russian Finance Minister Alexei Kudrin told reporters there was no near-term alternative to the dollar as the world's leading reserve currency. The greenback strengthened against most of its major rivals after the remarks. A stronger dollar tends to push dollar-denominated gold prices lower. On the Comex division of the New York Mercantile Exchange, August gold fell $13.20, or 1.4%, to $927.50 an ounce. The June contract ended at $926.90, the lowest settlement for a front-month contract since May 19.

"Stronger dollar sentiment has put gold under further pressure," said James Moore, an analyst at TheBullionDesk.com, in a note. "Short-term the metal could extend lower as a result of the dollar." "However the current correction is likely to prove beneficial longer-term with the pullback offering investors a chance to enter the market," he added. Kudrin's remarks supported a concerted effort by Russia, China and other major holders of dollar reserves to shift away from talk that could weaken the dollar — and the value of their holdings, strategists said. See full story.