Gold’s value in the stock market this week.

This week the price of gold has dropped 1.4% (currently priced at 1,342 an ounce on the Comex division. The fluctuations of gold have been met with more dips and fewer gains.

So what are the possible reasons for these fluctuations? The outlook of an improving economy may be putting gold under pressure as low interest rates may be coming to an end. However Federal Reserve officials will most likely keep interest rates on hold until later this year which results in an undervalued US dollar and a benign interest rate environment for precious metals such as gold.
The dollar index has declined by .86% or 78.15. With a weaker dollar, the price of precious metals and other commodities becomes less expensive for holders of other currencies. To investors, the volatility of gold remains uninterrupted in the market

http://www.marketwatch.com/story/gold-silver-extend-losses-as-stocks-gain-2011-01-21