NEW YORK—Gold prices fell Wednesday as a stronger U.S. currency damped investors’ appetite for the dollar-denominated metal.
Gold for April delivery, the most actively traded contract, fell $12.60, or 1%, to settle at $1,219.60 a troy ounce on the Comex division of the New York Mercantile Exchange.
The dollar advanced against a basket of international currencies as jitters surrounding Greek debt talks saw investors sell euros in favor of the U.S. currency. The ICE Dollar Index touched a two-week high of 95.11.
Eurozone finance ministers said Greece has yet to present a concrete plan for dealing with its debt obligations ahead of an emergency meeting to discuss the country’s debt problems. Greece is quickly running out of cash, with its current bailout running out at the end of the month.
“There are worries Greece could exit the European Union, which could open the door to other, smaller EU countries doing the same,” said Jim Wyckoff, senior analyst with Kitco.com in a note to clients.
While worries about the eurozone can benefit gold, if investors flock to the precious metal to protect their wealth from turmoil in Europe, a stronger dollar can offset these shifts. Gold is traded in dollars and becomes more expensive for investors who use other currencies to fund their purchases.
Other precious metals followed gold lower. Platinum for April delivery fell 1% to $1,195.60 a troy ounce on the Nymex, the first close below $1,200 an ounce since Dec. 24.
News Source : wsj.com
January 11, 2016