Gold fell below $800 an ounce and silver slumped to the lowest in more than a year as the U.S. government’s seizure of mortgage lenders Fannie Mae and Freddie Mac boosted the value of the dollar and reduced the appeal of bullion as an alternative asset.The U.S. currency traded near the highest level since October against the euro while gold fell to within 3 percent above its low this year. The dollar index, which tracks the greenback against currencies of six major U.S. trading partners, rose to a one-year high yesterday.

“It appears that the market is torn between those investing in gold ahead of the Indian wedding season and those selling gold as a result of the strength of the U.S. dollar and weak economic conditions,” Jonathan Barratt, managing director of Commodity Broking Services, said in a report yesterday.

Bullion for immediate delivery fell 0.7 percent to $796.15 an ounce at 1:42 p.m. in Singapore. Silver for immediate delivery fell to as low as $11.84 an ounce, the lowest since Aug. 31, 2007, before trading at $11.8475.

Read Full Bloomberg Article Here

Related posts:

1. Gold Falls as Dollar Climbs for Second Day; Silver Declines
2. Gold Falls Most in Six Weeks as Dollar Rallies; Silver Declines
3. Gold May Gain in London on Inflation Concern, Weaker Dollar
4. Gold Falls in London After Dollar Rebounds; Silver Also Drops
5. Gold dulls as dollar turns mixed, oil backs off high
6. Five Rare Date Gold Coins With Broad Appeal
7. Austrian Mint’s Vienna Philharmonic 20 Ounce Gold Coin celebrates a 20 Year Success Story
8. Gold’s new record high above $850 – based on fundamentals, price should keep rising
9. Gold touches 27-year high of $746.30 an ounce; silver surges nearly 3%
10. Gold Gains in London as Dollar Drops Against Euro; Silver Rises