Precious metals declined Thursday as the U.S. dollar gained against other world currencies after the Bank of England and the European Central Bank cut interest rates in an attempt to stimulate their economies. New York silver, gold and platinum futures lost 3.8 percent, 1.4 percent and 4.7 percent, respectively.
December crude-oil fell for the second straight session, dropping $4.53, or 6.9 percent, to close to $60.77 a barrel. An intraday low of $60.16 marked a new level not seen since March 2007.
December silver lost 40 cents to end at $10.055 an ounce.
January platinum plunged $41.70 to settle at $838.30 an ounce.
Gold for December fell $10.20 to close to $732.20 an ounce.
"The dollar’s strength is just squashing gold," said Ralph Preston, a futures analyst at Heritage West Futures Inc. in San Diego. "Gold is behaving like every other asset under the sun. It’s deflating."
The Bank of England cut its benchmark interest rate by 1.5 percentage points to 3 percent while the European Central Bank cut its key rate by 50 basis points to 3.25 percent.
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. When prices are falling and economic activities are shrinking, gold prices tend to move lower.
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