Rising Dollar Strips Gold’s Momentum

For the first time in four days Gold (NYSE:GLD) ended lower this afternoon (barely), paring down 0.1% to close at $1,615.10 per ounce for August delivery. Today’s losses follow a three day growth spurt in price that send gold to record highs as investors flocked to the favorite safe haven bet as worries that the U.S. could default intensified. Today government leadership failed yet again to even vote on a new deal to raise the debt ceiling, as plans proposed by Rep. John Boehner and Senator Harry Reid are being revised after receiving criticism from the Congressional Budget Office (-CBO). The US Dollar (DTY) was the real game-changer for gold-bugs today. The dollar surged up (NYSE:UUP) 0.76% in currency trades, boosting its value compared to the yellow metallic asset. Matt Zeman, head trader with Kingsview Financial, said of gold’s movement today, “people were eager to book profits … after this run…Gold is going to remain well supported until there’s some type of resolution on this debt issue.”

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Other precious metals followed gold’s losses today with silver (NYSE:SLV) shedding -1.0% in trades, closing at $40.57 an ounce for September contracts.Copper inched lower to close down $0.03. Palladium receded by -0.90%, or $2.90 to close at $833.20 an ounce. Platinum was the only gainer in precious metals today, edging up $0.80 to $1,808.

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