By Claudia Assis, MarketWatch SAN FRANCISCO (MarketWatch) -- Gold futures headed lower Monday after fluctuating earlier in the day as the U.S. dollar strengthened against other major currencies. Gold for August delivery lost $6.50, or 0.5%, to $1,250 an ounce on the Comex division of the New York Mercantile Exchange. Prices had opened lower and hit an intraday low of $1,246.20 earlier. "A lot of it is due to the euro coming off its highs" and the dollar's strength, said Charles Nedoss, a senior market strategist with Olympus Futures in Chicago. The dollar index (DXY 85.52, +0.21, +0.24%) , which compares the U.S. unit to a basket of six currencies, rose to 85.42 compared to 85.34 on late Friday North American trade. Gold on Friday closed just a couple of dollars' short of the June 8th's record high of $1,258.20 an ounce. "We weren't able to punch a new high (Friday), got weaker, and you are seeing some people taking a little bit of money off the table," he added. A meeting of world leaders over the weekend provided little direction for gold, failing to assuage fears about the pace of the global recovery. Headlines about Iran's nuclear capabilities were also in investors' minds. "Ongoing concerns over the global economic recovery remain unabated after the weekend G20 summit, while headlines on the CIA comments about Iran's nuclear capability have been doing the rounds," analysts at Barclays Capital said in a note to clients Monday. The G20 economies over the weekend vowed to stabilize or reduce the ratios of government debt to gross domestic product by 2016. The G-20 warned that synchronized fiscal adjustment across several major economies could adversely impact the recovery. As a result, fiscal consolidation plans should be tailored to national circumstances and focused on growth-boosting measures. Iran may have enough fissile material to make two atomic weapons, with the capability to build the first in two years, the analysts said. "While not entirely new, this has served as a reminder of the threats that Iran poses and where a resolution still looks difficult." Gold investors remain hopeful bullion's run still has legs. Data from the Commodity Futures Trading Commission showed that more investors are "long" on gold on the week ended June 25, or bet that prices are going to go up, than they were the previous week. In the U.S., the Commerce Department said Monday that the savings rate for American households rose to the highest level in eight months in May. Personal incomes also increased. That fueled a rise for palladium and platinum, on hopes that an increase in car sales could follow. Platinum and palladium are used on auto catalytic converters and prices often move around auto industry news. Platinum for July added $5.60, or 0.3%, to $1,576 an ounce. Palladium for September delivery reversed course, losing $1.40 to $476.50 an ounce. Silver for July delivery retreated 3 cents, or 0.1%, to $19.09 an ounce. Copper, meanwhile, posted gains, advancing a penny, or 0.2%, to $3.10 a pound. Meanwhile, the SPDR Gold Trust (GLD 121.10, -1.66, -1.36%) , the largest exchange-traded fund backed by gold, was down 0.3% to $122.37. The ETF's holdings remain at a record high, with 1,316 metric tons (1,450 short tons) at hand as of Friday, from 1,313 metric tons earlier last week.

Source