Gold prices pulled back from a multiweek high
Gold prices pulled back from a multiweek high Monday as the U.S dollar strengthened and investors took profits on a late-day rally at the end of last week, says Dow Jones.
Gold for December delivery was recently down 0.2% at $1,271.40 a troy ounce on the Comex division of the New York Mercantile Exchange.
The Wall Street Journal Dollar Index, which tracks the greenback against a basket of other currencies, was recently up 0.1% at 88.73. A stronger dollar tends to weigh on gold and other raw materials, which are priced in the U.S. currency and become more expensive for foreign buyers when the dollar rises.
Investors were also locking in gains after gold prices spiked late Friday afternoon on news that the The Federal Bureau of Investigation said it uncovered new evidence in its investigation of Democratic presidential candidate Hillary Clinton’s email server. Some investors buy gold during times of political turbulence, believing it will hold its value better than other assets.
However, “these event-driven type rallies rarely last,” said George Gero, a managing director at RBC Capital Markets.