Au Continues to Show Weakness From a Higher Dollar

“Gold fell for a third day in New York as strength in the dollar may mean more declines in exchange-traded products holdings.

Holdings in gold-backed ETPs dropped 0.6 percent on May 10 as the dollar reached a five-week high against six major currencies, according to data compiled by Bloomberg. The U.S. Dollar Index climbed as much as 0.2 percent today as the Standard & Poor’s GSCI gauge of 24 commodities fell 0.6 percent.

“Commodities in general have been hurt by the dollar’s recent strength,” said Sun Yonggang, a macroeconomic strategist at Everbright Futures Co., a unit of one of China’s largest state-owned investment companies. “Investors are losing interest in gold.”

Gold for June delivery dropped 0.6 percent to $1,428.10 an ounce by 6:11 a.m. on Comex in New York. Prices dropped 1.9 percent last week, the first decline in three weeks….”

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