Dollar Advances; Gold Price Tumbles
The dollar staged a broad advance Tuesday, climbing to its highest levels in more than six weeks to extend a rally that dealers attributed to a brighter economic outlook in the United States and technical trading factors.
The dollar’s surge, combined with an announcement that a walkout against some South African gold mines was being suspended by the black National Union of Mineworkers, sent gold prices tumbling. Republic National Bank of New York said gold bullion was bid at $325.25 an ounce as of 4 p.m. EDT, down $7.75 from the late bid Friday.
Currency and bullion markets in the United States resumed trading after being closed Monday for Labor Day.
“I think we’re all a bit overwhelmed by the rebound” of the dollar, said Joseph Volpicella, foreign exchange manager at the New York branch of Union Bank of Switzerland. “The market has not quenched its appetite.”