06-24-2008, 12:31 AM
Gold falls nearly 3 pct on dollar gains
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Meanwhile the euro fell sharply against the U.S. currency after soft European economic data earlier on Monday which showed a contraction in manufacturing and services activity in the euro zone.
<b>A stronger dollar typically weighs on gold, as it is bought as a hedge against weakness in the U.S. currency. A stronger greenback also makes dollar-priced gold more expensive for holders of other currencies. However, traders said interest in gold from physical buyers, who have been discouraged by high and volatile prices in recent months, has supported the market</b><!--QuoteEnd--><!--QuoteEEnd-->
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Meanwhile the euro fell sharply against the U.S. currency after soft European economic data earlier on Monday which showed a contraction in manufacturing and services activity in the euro zone.
<b>A stronger dollar typically weighs on gold, as it is bought as a hedge against weakness in the U.S. currency. A stronger greenback also makes dollar-priced gold more expensive for holders of other currencies. However, traders said interest in gold from physical buyers, who have been discouraged by high and volatile prices in recent months, has supported the market</b><!--QuoteEnd--><!--QuoteEEnd-->