Gold Slowly Recovers From 34 Month Low Drop

Gold declined for the first time in three sessions as a stronger dollar reduced the appeal of the precious metal as an alternative investment.
The dollar gained as much as 0.5 percent against a basket of six currencies, extending the year’s advance to 4.6 percent. Bullion futures slid 23 percent in the second quarter, the most since at least 1975, as Federal Reserve Chairman Ben S. Bernanke said that the central bank may slow its bond-buying program this year.
“The stronger dollar is one of the reasons” why gold is retreating, Peter Fertig, the owner of Quantitative Commodity Research Ltd. in Hainburg, Germany, said today by telephone. “The overall sentiment remains bearish and the first sign of weakness is used to sell.”
Gold futures for August delivery slid 0.3 percent to $1,252.10 an ounce at 9:14 a.m. on the Comex in New York, after climbing as much as 0.9 percent. The metal gained 3.6 percent in the previous two sessions.

via Bloomberg

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