“Gold fell to a six-week low in London on speculation a stronger dollar will curb demand for an alternative investment. Other precious metals declined.
The U.S. Dollar Index, a measure against six major trading partners, climbed to a one-week high. Bullion has erased gains made after the Federal Reserve announced a third round of debt- buying on Sept. 13. The Fed concludes a meeting tomorrow. Stimulus measures taken by central banks from Europe to China helped drive gold to a 10-month high of $1,796.05 on Oct. 5.
“The dollar has been stronger and that’s one of the reasons why gold has been under pressure,”Afshin Nabavi, a senior vice president at bullion refiner MKS Finance SA in Geneva, said today by phone. “It could be a healthy correction. It’s just a matter of time before gold can reach $1,800 an ounce.”
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