U.S. dollar rises against other major currencies
By Claudia Assis and Polya Lesova, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold and other metals futures fell Thursday, with the price of silver tumbling more than 4%, as the U.S. dollar strengthened against other major currencies.
Silver for July delivery SIN11 -5.38% slumped $1.64, or roughly 4.7%, to $33.92 an ounce on the Comex division of the New York Mercantile Exchange. The metal tumbled 7.7% in the previous session.
“Despite the price slump already, we still see further correction potential for silver, though its downward course is unlikely to be a one-way street,” Commerzbank said in a note.
Gold for June delivery GCM11 -0.47% slipped $4.70, or 0.3%, to $1,497 an ounce, after losing 1% Wednesday.
The declines in metals futures came as the U.S. dollar gained against its major rivals. The dollar index DXY -0.01% traded at 75.342, compared with 75.259 late Wednesday.
Dollar strength usually weighs on dollar-denominated commodities because it makes them more expensive for holders of other currencies.
Meanwhile, U.S. stocks opened lower, and European stock markets posted losses.
Oil futures also dropped, with the June contract falling 50 cents to $97.66 a barrel. Read more about oil.
Metals prices have surged this year, with gold reaching records and silver hitting 31-year highs. Before the correction that started last week, silver had gained about 60% this year.
