Gold prices fall as dollar gains on rising U.S. optimism

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Gold prices fall as dollar gains on rising U.S. optimism
Gold prices fell on Monday as the traders opted to book profits and in turn went for the dollar as investors bet on a pickup in economic recovery in the US on expectations that the Federal Reserve will reveal later this week whether it thinks that the U.S. economy is in less need of stimulus measures.

Gold futures for June 2012 contract, at MCX, were trading at Rs. 28,683 per 10 grams, down by 0.06 per cent after opening at Rs. 28,685 against the previous closing price of Rs. 28,701.

Later today, the eurozone is expected to announce preliminary reports on manufacturing and services purchasing managers' indices in France, Germany and euro zone. As a result of this, investors sold the euro in turn boosting demand for dollar which ultimately sent the precious metal lower.

At the Commodity Exchange (COMEX), gold future for June 2012 delivery traded at US$1,642.9 per ounce, up by 0.006 per cent on strong global cues. It opened at US$1,642.8 against the previous closing price of US$1,642.8. It touched the intra-day high of US$1,644.2.

Read more about: gold, mcx, dollar
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