World Economy

Gold Dips 2%

Gold Dips 2%Gold Dips 2%

Gold fell as much as 2% on Monday as the dollar strengthened and investor appetite for risk increased, but the metal remained above $1,200 an ounce after a rally that pushed prices to one-year highs this month, Reuters reported. Concern over financial instability and the repricing of expectations for US interest rate rises, has helped the metal outperform most assets so far this year with a 15% gain. Spot gold, which posted small losses last week on profit-taking after rallying to $1,260.60 on Feb. 11, was down 1.3% at $1,211.91. It had earlier fallen 2.2% to a session low of $1,201.63. “Despite the move lower, the contagion of negative interest rates elsewhere signal that gold is not suddenly going to retrace its way back to its lows,” Citi strategist David Wilson said.