By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures retreated Tuesday, pulling back from the previous session’s record close above $1,350 an ounce as the U.S. dollar recovered from eight-month lows.
The dollar’s recent slide, along with an expected further erosion on the heels of potential monetary easing, “has been the single most identifiable catalyst for the feeding frenzy in certain (exchange traded funds) that are geared toward emerging markets, commodities and precious metals,” said Jon Nadler, senior analyst at Kitco Metals Inc.
“In the case of gold and silver, pretty much the only identifiable factor,” Nadler wrote in a note to clients.
Gold for December delivery (GCZ10 1,348, -6.10, -0.45%) fell $4.10, or 0.3% to $1,350.40 an ounce on the Comex division of the New York Mercantile Exchange.
The contract ran up to a high of $1,356.30 earlier on in the session, after Monday’s close at $1,354.40 an ounce.
The dollar index (DXY 77.59, +0.15, +0.19%) , which tracks the performance of the greenback against a basket of six global currencies, rose 0.3% to 77.73.
Silver and copper also lost some steam, coming off a 30-year high and a 27-month best, respectively.
Silver for December delivery (SIZ10 2,320, -15.40, -0.66%) was off 20 cents, or 0.9%, to $23.14 an ounce.
December copper (HGZ10 379.60, +0.65, +0.17%) retreated 2 cents, or 0.5%, to $3.77 a pound.
