Gold prices were falling Tuesday as the value of the greenback firmed and investors speculated that authorities might start a vigorous fight against inflation.
Benchmark bullion futures were slumping $8.20 at $920.60 an ounce in recent action on the Comex division of the New York Mercantile Exchange.
Golds climb came as the dollar rose against the euro, the pound and the Japanese yen. The price of dollar-denominated assets tends to fall as the U.S. currency rallies.
Separately, leaders at the G-8 meeting in Japan expressed concern over rising commodity prices.
"The take-home finding here is that the G-8 leaders are in sync on the vilification on inflation as Public Enemy #1," writes Jon Nadler, a gold analyst at Montreal-based bullion dealer Kitco, in a research report. "Therefore, expectations that they might start acting accordingly are keeping interest rate watchers on extended work shifts."
CurrencyShares Euro Trust
CurrencyShares British Pound Sterling
were both off 0.3%. The
CurrencyShares Japanese Yen Trust
was barely changed, down less than 0.1%.
SPDR Gold Trust
, was lower by 0.5%.
In the precious metals patch
was losing 1.2%, weighed down by the sinking metal price.