Gold fell and silver plunged Monday for a second day as the U.S. dollar continued to gain against other world currencies and reduce the appeal of metals. In other markets, oil dropped while U.S. stocks ended side ways after rallying late.
In New York trading futures for bullion:
Silver for July delivery plummeted 43.3 cents, or 2.8 percent, to $14.955 an ounce. The low and high for the day was $14.735 and $15.46, respectively.
Gold for August fell $10.10, or 1.0 percent, to $952.50 an ounce. The yellow metal ranged from $943.80 to $961.10.
- July platinum plunged $42.20, or 3.3 percent, to $1,244.00 an ounce.
"Gold prices could eventually fall toward $930 before rebounding back toward last week’s high at $990," Tom Pawlicki, an analyst at MF Global in Chicago, was quoted on Bloomberg. "Silver prices could fall toward $14.60 support before rebounding back toward $16."
"The metal traded lower as the dollar staged a strong rally," James Moore, an analyst at TheBullionDesk.com, was quoted on MarketWatch. “Given overbought chart indicators and the slight decline in SPDR holdings Friday, gold will continue to run into overhead resistance above the $980 level."
In spot bullion, the benchmark London gold fix price declined $18.25 to $943.75 an ounce. Silver fell 81 cents to $14.84 an ounce. Platinum was fixed $49.00 lower to $1,226.00.
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
Oil prices ended lower Monday, but managed a comeback in after-hours trading. New York crude-oil for July delivery closed down 35 cents, or 0.5 percent, to close at $68.09 a barrel. It later moved up to $68.67 in electronic trading.
AAA said the national average for unleaded gasoline rose six-tenths of cent. The average price per gallon is now $2.619, which is 10.7 cents higher than a week ago and 42.4 cents higher than last month.
Rallying in the final hour of trading, U.S. stocks recovered from earlier day losses to end mostly flat. The Dow Jones industrial average added 1.36 points, or 0.02 percent, to 8,764.49. The S&P 500 Index .SPX fell 0.95 points, or 0.10 percent, to 939.14. The Nasdaq Composite Index slipped 7.02 points, or 0.38 percent, to 1,842.40.
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