Gold fell 1.5 per cent to below $1,080 (U.S.) an ounce on Friday as the U.S. dollar hit a seven-month high versus a basket of currencies after China unveiled a surprise hike in commercial banks’ reserve requirements.
The precious metal has re-established its usual inverse relationship to the dollar after safe-haven buying pushed both assets higher in the previous session.
Spot gold was bid at $1,078.95 an ounce at 1107 GMT versus $1,095.85 late in New York on Thursday. In that session it hit a one-week high of $1,097.75 an ounce as investors bought the metal amid fears over the stability of paper currencies.
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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