RTRS:Gold extends losses on dollar; platinum slides
By Rujun Shen
SINGAPORE (Reuters) - Gold fell to a one-week low on Monday, extending losses made in the previous session, as the dollar firmed on worries about Spanish debt yields and the pace of Chinese economic growth, while platinum sank to its lowest level in more than two months.
Spot gold lost nearly 1 percent in the previous session, as a selloff in riskier assets spilled over, although bullion still managed to post a 1.7-percent weekly rise - its biggest one-week gain since late February.
Weaker-than-expected economic growth in China in the first quarter weighed on financial markets, at a time when the U.S. recovery momentum seems to be slowing and fear about the euro zone debt crisis is resurfacing.
"The market in general is feeling a bit risk-averse and we can see commodities weaker across the board," said Nick Trevethan, senior commodity strategist at ANZ in Singapore, adding that gold could fall towards $1,620 if it breaks below the key support level at $1,650.
Spot gold fell 0.9 percent to a one-week low of $1,644.04 an ounce, and stood at $1,647.16 by 0623 GMT. U.S. gold slid 0.7 percent to $1,648.60.
Technical analysis suggests spot gold will drop to $1,630 an ounce during the day, Reuters market analyst Wang Tao said.
The dollar index rose to its highest in a week and half, extending gains from Friday.
Activities in Asia's physical market was sluggish, as buyers remained on the sidelines, awaiting a further drop in prices.
"Since we failed to break below $1,650, today is mostly likely another quiet day," said a Singapore-based dealer. "We are back to square one."
Spot platinum slid more than 2 percent to $1,556.5 an ounce, its lowest in more than two months, before recovering slightly to $1,565.74.
Platinum, mainly used in autocatalysts and jewellery, is prone to economic downturns. Prices fell more than 20 percent last year due to the turbulence in the global economy.
Spot silver dropped to a one-week low of $31.19 an ounce, before trading at $31.33. The metal slid 2.5 percent in the previous session.
"There seem to be a lot of downward pressure mainly due to the stronger dollar," said a Shanghai-based trader. "Demand-wise, industrial demand is similar to the levels in the past few years but investment demand may be weaker than last year's."
Speculators cut their net long exposure in gold and silver in the week ended April 10, said the U.S. Commodity Futures Trading Commission.