Stronger dollar decreases European gold
Gold fell in Europe on Monday with the US dollar gaining 0.7 percent adding to the 1.7 percent increase on June 5, which was the most in more than four months. Gold, which typically moves inversely to US currency, sunk 2.6% on June 5, taking claim as a two-month low. Bernard Sin, head of currency and metals trading at Swiss refiner MKS Finance SA, has gone on to say that "The dollar is still going to be the main driver, and any bad news will trigger more selling."
The US dollar is taking a climb against a handful of currencies which is extending the sharp gains that took place last week. The increase is staggering enough for the U.S. Treasury yields to report seven-month highs. With the spur of the US dollar there is also the added weight tacked onto gold. In effect it causes dollar-priced commodities such as bullion to become more expensive for holders of other currencies that might be looking to make exchanges.
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