Spot gold headed for a third straight decline as a mounting political crisis in Italy drove gains in the dollar, undercutting demand for the metal as an alternative asset.
Bullion for immediate delivery fell 0.3% to $1,295.03/oz at 9:53am in N.Y. Bloomberg Dollar Spot Index rose 0.2%.
The turmoil affecting Italy is “causing the dollar to rally” because of its “safe-haven” qualities, Ryan McKay, a commodity strategist at TD Securities in Toronto, says in telephone interview.
“That's weighing on gold and counteracting the positives from geopolitics”.
In other precious metals, spot silver lost 0.7% to $16.3540/oz. Platinum for immediate delivery added 0.1% to $905.08/oz while palladium rose 0.2%.