Gold dips below 1,200 dollars as dollar firms

08:21, July 13, 2010      

Email | Print | Subscribe | Comments | Forum 

Gold futures on the COMEX Division of the New York Mercantile Exchange ended much lower on Monday, as the U.S dollar strengthened and reduced gold's appeal as an alternative asset. Silver and platinum both retreated.

The most active gold contract for August delivery lost 11.1 dollars, or 0.9 percent, to finish at 1,198.7 U.S. dollars per ounce.

Traders noted that the stronger dollar was the major factor behind the precious metal's decline on Monday, as investors remained cautious with the approach of second-quarter earnings reports, and the U.S. equity markets remained narrowly mixed.

The dollar index, which measures the U.S. unit against a basket of six major currencies, climbed 0.4 percent to 84.25.

The strength in the greenback made the purchase of dollar- denominated futures contracts more expensive for investors using other currencies. It also eroded gold's appeal as an alternate currency.

Traders noted that investors continued to lock in profits after gold jumped above 1,200 dollars per ounce last Friday and eked out a 0.2-percent gain for the week, as there was no important news on Monday to spur demand for safe haven financial assets like gold.

September silver was down 15.6 cents, or 0.9 percent, to settle at 17.917 dollars per ounce. October platinum dipped 17.9 dollars, or 1.2 percent, to settle at 1,515.3 dollars per ounce.



  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • On Sept. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
  • Chinese forest armed forces work together with forest firefighters on Sept. 28. (Xinhua/Chai Liren)
  • Photo taken on Sept. 29, 2011 shows strong wind blows trees in Sanya, south China's Hainan Province. Typhoon Nesat heads towards south China and is moving at an average wind speed of 20 km per hour toward the west coast of China's Guangdong Province. (Xinhua/Hou Jiansen)
  • A fallen tree is seen on a road in Qionghai, south China's Hainan Province, Sept. 29, 2011. Typhoon Nesat was predicted to land in Hainan later Thursday, bringing heavy rainfalls to the island. (Xinhua/Meng Zhongde)
  • Arash Kamalvand (L) of Iran spikes the ball during the semifinal against South Korea at the 16th Asian Men's Volleyball Championship in Tehran, Iran, Sept. 28, 2011. Iran won 3-1 to advance to the final. (Xinhua/Ahmad Halabisaz)
  • A man visits "Thy Word Is Truth, the Bible Ministry Exhibition of the Protestant Church in China", during its opening at Mount Vernon Place United Methodist Church in Washington DC, capital of the United States, Sept. 28, 2011. Through the Bible's various Chinese versions, ancient or modern, as well as pictures, paintings, calligraphy, art works and historical documents, the exhibition was expected to give an overall understanding of how Bible was brought into China, how it was translated, published, distributed and loved. (Xinhua/Zhang Jun)
Hot Forum Discussion