NEW YORK (Dow Jones)--Gold futures fell Friday as strength in the dollar and the metal's failure to hold upward momentum this week provided an excuse for traders to cash out. Gold for August delivery, the most actively traded contract, recently traded $11.90, or 0.8%, lower, at $1,530.80 a troy ounce on the Comex division of the New York Mercantile Exchange. Futures fell as low as $1,526.70 an ounce, the lowest intraday price since June 3. June-delivery gold recently traded 0.8% lower at $1,529.70 an ounce. Traders viewed a stronger dollar Friday as an opportunity to sell gold and other precious metals. Dollar-denominated commodities can come under pressure as a rising greenback makes the futures more expensive for market participants using other currencies. The ICE U.S. Dollar Index, which tracks the currency against those of some major U.S. trading partners, was recently at 74.399, up from 74.192 late Thursday in New York. "This could open (gold) up to new lows, especially if you get continued dollar strength," said Frank McGhee, head precious metals dealer with Integrated Brokerage Services. Gold rose steadily during the last weeks of May as investors turned to the metal as a refuge because of signs of slowing U.S. economic growth and worry over Europe's sovereign debt crisis, and the metal seemed poised to challenge its record highs set earlier in the month. Some traders buy gold on the belief that it holds its value better than other assets during turmoil in other markets. But gold's upward momentum faded in June, as a lull in seasonal demand for precious metals and a stabilizing dollar kept gold from holding above the $1,550 a troy ounce level. Other precious metals traded in New York were also lower Friday. Platinum and palladium, which are used chiefly in the auto industry for catalytic converters, could see a pullback in the coming weeks, Standard Bank analyst Walter de Wet said in a research note, citing a seasonal dip in auto sales and weakness in Chinese manufacturing. Nymex palladium for September delivery, the most actively traded contract, was recently down $7.10, or 0.9%, at $811.00 a troy ounce. Platinum for July delivery, the most actively traded contract, was down $13.70, or 0.7%, at $1,831.00 an ounce. Silver for July delivery, the most actively traded contract, was recently down 72.9 cents, or 2%, at $36.695 a troy ounce. -By Matt Day, Dow Jones Newswires; 212-416-4986; matt.day@dowjones.com

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