Gold futures closed with a loss of more than $6 an ounce Wednesday with strength in the U.S. dollar against other major currencies prompting the precious metal to end a three-session winning streak
Gold futures closed with a loss of more than $6 an ounce Wednesday with strength in the U.S. dollar against other major currencies prompting the precious metal to end a three-session winning streak.
Gold for June delivery fell to a low of $865.50 an ounce on the New York Mercantile Exchange. It closed $6.50 lower at $871.20, after climbing nearly $27 over the previous three trading sessions.
The dollar rose Wednesday as downbeat U.S. home sales data failed to offset the effects of weak U.K. and euro-zone data earlier. The dollar index, which measures the greenback against a basket of six major currencies, was at 73.52 in North American trading, compared with 73.015 late Tuesday. See Currencies.
The greenback's rise came despite a drop in the National Association of Realtors' index of sales contracts on previously owned homes. The index, considered a leading indicator of existing-home sales, fell 1.0% in March, and was 20.1% below the March 2007 level. See Economic Report.
But the finance ministers from the Group of Seven industrialized nations "have made it clear that they do not like a weak dollar and will do something about it, which could be why the dollar is stronger," he said in emailed comments.
Gold's fall Wednesday marked a reversal from Tuesday, when the metal gained $3.60 at $877.70 an ounce, boosted by oil's surge to a record high above $122 a barrel.
Crude-oil futures touched a fresh record above $123 Wednesday following a U.S. government report which showed that crude supplies climbed for a third week in a row, but that refinery capacity declined.