Gains in gold were swiped away for the year on Monday as the yellow metal slumped as low as $865.10 an ounce. Silver was struck harder as it fell toward $12. Platinum, oil and U.S. stocks retreated as well. The U.S. dollar gained against other world currencies.
The New York bullion trading futures say it all:
May silver fell 62.5 cents, or 4.9 percent, to $12.11 an ounce.
Gold for June dropped $24.50, or 2.7 percent, to $872.80 an ounce.
- April platinum declined $14.40, or 1.2 percent, to $1,145.00 an ounce.
"The after-effects of last week’s G-20 meeting and IMF gold mobilization chatter started to take their effects on more than just the swiftest speculative trigger-fingers out there," wrote Jon Nadler, senior analyst at Kitco Bullion Dealers. "Mass position liquidations followed on the heels of a substantial rise in the US dollar and a $1.40 drop in crude oil."
In spot trading, the London afternoon gold-fixing price, which is a benchmark for gold traded directly between big institutions, stood at $870.20 an ounce. The London market for silver and platinum ended at $12.41 and $1,150.00, respectively.
Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies.
Oil and gasoline prices
For the second straight day, crude-oil futures dropped. Oil lost $1.46, or 2.8%, to $51.05 a barrel. Gasoline prices at the pump moved lower (slightly) as well. AAA said the average price for unleaded gasoline fell one-tenth of a cent to $2.039 a gallon.
U.S. stocks ended a four-day winning streak as banking and technology sectors ere weakened. The Dow declined 41.74 points, or 0.52 percent, to 7,975.85. The S&P lost 7.02 points, or 0.83 percent, to 835.48. The Nasdaq was lost 15.16 points, or 0.93 percent, at 1,606.71.0 points.