Gold Declines Below $800 an Ounce as Rising Dollar Cuts Appeal

The U.S. currency traded near the highest level since October against the euro while gold traded 3.5 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 declined 0.3 percent to $799.75 an ounce at 9:37 a.m. in Singapore. Silver for immediate delivery fell 0.7 percent to $12.01 an ounce.

The U.S. currency rose for the ninth day, adding 0.4 percent to $1.4071 against the euro at 9:29 a.m. in Singapore. It touched $1.4054 yesterday, the highest since Oct. 9, 2007.

''At the moment we feel that gold is trading in a wide range between $840 and $775 and we feel it represents good pickings at either end of the spectrum,'' Barratt added.

Crude oil in New York fell 0.3 percent to $105.99 a barrel at 9:32 a.m. in Singapore. Crude oil often gives direction to gold as investors buy bullion to hedge against rising inflation.

December-delivery gold added 0.2 percent to $804 an ounce in after-hours electronic trading on the Comex division of the New York Mercantile Exchange at 9:35 a.m. in Singapore.

Gold for December delivery traded in Shanghai fell 1.5 percent to 178.69 yuan a gram ($812 an ounce) at the same time.

In Japan, gold for August delivery on the Tokyo Commodity Exchange fell 2.3 percent to 2,780 yen a gram ($803 an ounce).

       aluminum tube            aluminum fin strip     copolymer coated  aluminum tape       kitchen cabinet                      zinc strip