NEW YORK (MarketWatch) - Gold futures fell Friday for a second session, heading for the biggest monthly loss since early 1983, as a strengthening U.S. dollar and fund liquidations pounded the precious metal and other commodities.
Gold for December delivery fell $4.10, or 0.6%, to $734.40 an ounce on the Comex division of the New York Mercantile Exchange. The metal has lost 16% so far in October, the biggest percentage loss since February, 1983. Copper futures also slumped.
"The stronger dollar is weighing on the metals complex," wrote Edward Meir, a metals analyst at MF Global.
Also reducing gold prices, "speculative paper players using huge leverage continue to exit positions for the relative safety of cash due to margin calls on other bets," said Mark O'Byrne, executive director at Gold and Silver Investments.
Gold closed up nearly 2% Wednesday. Before ending the day weaker Thursday, the benchmark contract had risen to $778.30, the highest since Oct. 21.
"Given the ongoing need for cash dollars we continue to expect rallies to be used as selling opportunities," said James Moore, an analyst at TheBullionDesk.com.
In currencies trading, the U.S. dollar rose against the euro and the British pound. A rising greenback reduces gold's appeal as an alternative investment.
The metal is now 27% lower than its record high above $1,000 an ounce hit in March.
In gold spot trading, the London gold-fixing price -- used as a benchmark for gold for immediate delivery -- stood at $728.50 an ounce Friday morning local time, down $26.75 from Thursday afternoon.
Gold in the SPDR Gold Trust , the largest gold exchange-traded fund, remained at 749.21 tons Thursday, unchanged from Wednesday, according to the latest data from the fund. Gold held by the fund hit a record high of 770.64 tons on Oct. 10.
In other metals trading, December copper slumped 4.3% to $1.81 a pound, while December silver fell 2.6% to $9.535 an ounce.
December palladium slid 0.4% to $196 an ounce, and January platinum dropped 2.2% to $812 an ounce.
