RTTNews - Gold fell to a three-week low on Monday as a stronger U.S. dollar reduced the need to invest in the precious metal as a hedge outlet.
August-stamped gold futures dropped to $927.50 per ounce, down $13.20 on the session. Prices touched as low as $925.50 earlier in the session.
The dollar gained against the euro on Monday in New York and reached a 3 1/2 week high of 1.3754. The buck also saw moderate strength against the pound. Gold usually moves opposite the dollar because of the precious metal's hedge appeal.
The greenback was boosted by comments from Russian Finance Minister Alexei Kudrin, who said over the weekend outside the Group of 8 finance ministers meeting that the dollar's role as the main reserve currency was unlikely to change in the near future.
Monday's drop added to weakness seen last week. The precious metal lost $21.90 last week, its second straight weekly decline. The metal has been trending lower since reaching as high as $992.10 earlier this month.
In economic news, the New York Federal Reserve said its general business conditions index fell to a negative 9.4 in June from a negative 4.55 in May, with a negative reading indicating a deterioration in conditions. Economists had expected the index to edge down to a negative 5.10.
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