Tuesday, August 5, 2008
LONDON, Aug 5 (Reuters) – Gold fell more than 2 percent in Europe on Tuesday, tracking losses in other commodities, notably oil which lost more than $2 a barrel to a three-month low.
The dollar reached a new seven-week high against a basket of currencies, further dampening interest in gold. Traders are awaiting the rates announcement of the U.S. Federal Reserve later in the session.
Gold fell as low as $875.60 an ounce, its weakest level in nearly six weeks. At 1535 GMT it was at $877.00/878.00 an ounce, down from $895.55/896.95 late in New York on Monday.
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COMEX December gold GCZ8 lost $22.10 to $878.00 an ounce.
A firm dollar typically pressures gold, as it dents the precious metal’s appeal as an alternative investment. [ID:nL5644759]
“Gold has sold off on oil’s steep falls and with sharp falls in many other commodity markets,” said Mark O’Byrne, executive director of Gold and Silver Investments.
- A d v e r t i s e m e n t
“The CRB Reuters Jefferies Commodity Index was down 3 percent yesterday, its largest one day sell-off since last March,” he added.