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Gold drops to one-month low as dollar rallies before US data
[NEW YORK] Gold sank to the lowest level in more than a month, dropping back toward US$1,200 an ounce, as the dollar rallied, hurting demand for the metal as an alternative investment asset.
Bullion for immediate delivery fell as much as 0.7 per cent to US$1,208.38 an ounce, the lowest level since Feb 23, and traded at US$1,210.84 at 8:51 am in Singapore, according to Bloomberg generic pricing.
The price lost 3.1 per cent last week, the most since November.
Gold's rally this year has been cut to 14 per cent as a gauge of the dollar heads for the longest stretch of gains since January on the outlook for tighter monetary policy.
Data this week will shed further light on whether the US economy is strong enough to handle higher rates, with figures due on personal incomes and spending, pending home sales and consumer confidence before Friday's March jobs report.
That's forecast to show a gain of 208,000, according to a Bloomberg survey of economists.