Gold dips below 1,200 dollars as dollar firms

08:21, July 13, 2010      

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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.

Source:Xinhua

(Editor:黄蓓蓓)

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