Gold Futures Retreat As Dollar Gains

Gold futures fell in electronic trading during Asian hours Monday, with the metals complex under broad selling pressure from an uptick in the dollar.

Gold for December delivery  fell $13.30 to $1,746.40 an ounce on Monday, extending a decline from Friday, when the precious metal fell $10.90 for a weekly drop of 1.2%.

The losses for the precious metal came as the dollar worked its way back toward the 80-mark ahead of this week’s European Union summit.

The ICE dollar index , which measures the greenback against a basket of six major currencies, traded at 79.917, from 79.677 in late North American trading on Friday.

Strength in the dollar tends to weigh on dollar-denominated commodities such as gold and oil because it makes them more expensive for holders of other currencies.

Silver followed gold lower on Monday, and Fawad Razaqzada, at GFT Markets, said “the metals certainly look like they may have reached their melting points, so to speak, following a strong rally in recent months.”

Silver for December delivery  fell 46 cents to $33.23 an ounce, after a drop of 2.3% last week. December copper lost 2 cents to $3.68 per pound.

Palladium for December delivery  fell $2.25 to $636.80 an ounce while January platinum  dropped $9.80 to $1,649.50 an ounce.

Marketwatch