Gold Books a Loss As Stocks, Dollar Rally

By Mark DeCambreMarketsMarketWatch Pulse

Gold prices finished firmly lower Monday, as the dollar strengthened and as investors favored assets perceived as risky, including stocks, over so-called havens. August gold finished off $9.80, or 0.8%, to settle at $1,246.70 an ounce. The precious yellow metal has closed down in seven of the past nine trading sessions and has been pressured down by a trio of factors: The Federal Reserve's efforts to normalize U.S. interest rates, a climb in the Dow Jones Industrial Average and the S&P 500 index to records on the day, as well as a rising dollar, as measured by the ICE U.S. Dollar Index . On Monday, that gauge, a measure of the buck's strength against a basket of a half-dozen rivals, was climbing 0.3% higher. All of those factors have combined on Monday to weigh on gold, which is priced in dollars, doesn't offer a yield and tends to underperform when appetite for riskier assets is strong, detracting from demand for so-called haven like gold and U.S. Treasurys .

Copyright © 2017 MarketWatch, Inc.

Continue Reading Below