Gold returned to its recent slump, falling Tuesday along with platinum and oil. A stronger U.S. dollar and fund liquidations were cited culprits for gold’s downturn. For the day, New York gold and platinum futures fell 2.8 percent and 0.1 percent, respectively. Silver was a precious metals standout as it gained a healthy 4 percent.
After two straight session gains, November crude on Nymex gave way and declined $3.36, or 4.5 percent, to close at $70.89 per barrel.
December silver rose 39 cents to close at $10.08 an ounce.
January platinum fell 80 cents to end at $891.70 an ounce.
Gold for December lost $22 to settle at $768 an ounce. It has fallen in eight out of nine sessions, with Monday marking its positive day.
"The seemingly unstoppable US dollar and a $3 fall in the value of crude oil sent the metal back to an intra-day low near $764 -only some $25 away from the prices it last saw on the 11th of this month," said senior analyst Jon Nadler at Kitco Bullion Dealers.
"Gold still appears pointed towards the mid-$700’s if not lower, at this time. The name of the game remains fund liquidation. And, it is not isolated to gold. Base metals turned base(er) today," added Nadler.
Gold typically follows oil’s direction and moves opposite to the U.S. dollar, as a weakened dollar encourages investors to buy gold, also considered a hedge or safe-haven during times of high inflation and economic uncertainty.