Gold retreats after rally as stronger dollar reduces demand
London (Dec 2) Gold today retreated, after the biggest one-day rally in more than a year, as a stronger dollar curbed demand for the metal as a protection of wealth.
Gold fell 1.4 per cent to $ 1,195.65 an ounce and silver dropped 1.7 per cent to $ 16.18 an ounce. It rebounded yesterday from a five-year low of $ 14.42 to settle 6.5 per cent higher, the biggest gain since January 2012.
Gold jumped 3.8 per cent yesterday, reaching a one-month high. It rebounded from a 3-week low as crude oil reversed a drop to the lowest in 5-yearsand as some investors closed out bets on lower prices.
The greenback advances to the highest since 2009 yesterday amid expectstions the Federal Reserve will raise interest rates next year.