Gold futures fell $34.40 to settle at $1,618.10

Gold declined for the fifth time in six sessions as the dollar’s rebound eroded demand for the metal as an alternative investment, and concerns that the global economy will falter drove equities and raw materials lower.

Most advanced nations are lapsing back into recession, while the U.S. is already in the throes of an economic contraction, said Nouriel Roubini, the chairman of Roubini Global Economics LLC. The greenback rose as much as 0.7 percent today against a basket of currencies, and the Standard & Poor’s 500 Index of equities fell 2.1 percent. The S&P GSCI index of 24 raw materials headed for the biggest quarterly slump since 2008,

“People are trading gold as a commodity today,” Frank Lesh, a trader at FuturePath Trading in Chicago, said in a telephone interview. “The strength in the dollar is not helping matters either.”

Gold futures for December delivery fell $34.40, or 2.1 percent, to settle at $1,618.10 at 1:43 p.m. on the Comex in New York. In trading after the settlement, the metal touched $1,600.50. The price has tumbled 16 percent from a record $1,923.70 on Sept. 6.

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Posted by VBN on Sep 29 2011. Filed under Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry