Gold prices were little changed in New York, shedding earlier gains, after demand for the yellow metal as a safe haven investment option eased as the dollar gained strength.
The US Dollar Index, a six-currency gauge of the greenback’s value, rose after North Korea provoked international condemnation by exploding an atomic device on May 25 and test-firing missiles. The index fell 3.7% last week to a 2009 low, while gold increased 3%. Gold typically moves inversely to the dollar.
Gold futures for August delivery rose 10 cents to $955.20 on the New York Mercantile Exchange’s Comex division, after rising 0.7% earlier in the session.
Gold for immediate delivery in London was little changed, rising 55 cents to $952.55 an ounce. The metal rose to $951 an ounce in London’s afternoon “fixing,” used by some mining companies to sell their output, from $945 yesterday.
Silver futures for July delivery jumped 26.5 cents, or 1.8% to $14.865 an ounce in New York.