Gold falls on strengthening dollar

on October 08 2007 5:13 PM

Gold fell after the dollar advanced against the euro on Monday, reducing the appeal of the precious metals as alternative investments.

The dollar rose in trade against most currencies as investors bet that the sell off in Friday's session following the September employment report was overdone.

Spot gold fell to $732.80/733.60 by 2:15 p.m. EDT from $741.10/741.90 in New York late on Friday. Gold rallied to a 28-year high of $747.65 last Monday before a rebound in the dollar sparked selling from investors.

Most-active December gold on the COMEX division of the New York Mercantile Exchange settled down $8.50 or 1.1 percent at $738.70 an ounce.

It hit an intraday high of $748.50 and had hit a session-low of $736.70.

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