MW: Gold falls as dollar continues to strengthen; silver also down
NEW YORK (MarketWatch) -- Gold futures fell Monday for a second session as the U.S. dollar continued to strengthen against its major rivals on hopes for an economic recovery in the U.S., curbing gold's investment appeal.
Gold for June delivery fell $11.60, or 1.2%, to $950.10 an ounce on the Comex division of the New York Mercantile Exchange. The more active August contract lost $10.70, or 1.1%, to $951.90 an ounce.
"The metal traded lower as the dollar staged a strong rally," said James Moore, an analyst at TheBullionDesk.com, in a note. "Given overbought chart indicators and the slight decline in SPDR holdings Friday, gold will continue to run into overhead resistance above the $980 level."
Holdings in the SPDR Gold Trust (GLD 93.30, -0.41, -0.44%) , the biggest exchange-traded fund backed by gold, stood at 1,132.15 metric tons Friday, down 0.35 metric tons from the previous day, according to latest data from the fund.
In currencies trading Monday, the greenback was higher versus the euro and other major rivals, extending gains scored following Friday's jobs data on ideas the U.S. economy will lead an eventual recovery in the world economy. See Currencies.
A stronger dollar tends to put downward pressures on dollar-denominated commodities prices. Crude oil, which is also denominated in the dollar, lost more than 1% Monday.
Other metals also moved lower. The July silver contract lost 43.3 cents, or 2.8%, to $14.955 an ounce. Holdings in the iShare Silver Trust (SLV 14.76, -0.25, -1.67%) , the biggest silver ETF, stood at 8,605.43 metric tons Friday, unchanged from a day ago.
July platinum declined $48.20, or 3.8%, to $1,238 an ounce, while the September contract for palladium sank $9.80, or 3.8%, to $250 an ounce.
July copper lost 3.4 cents, or 1.5%, to $2.25 a pound.
Gold and silver futures had fallen sharply Friday as a better-than-expected U.S. employment report boosted hopes for an economic recovery and made precious metals a less attractive investment.
Gold ended last week's trading down 1.8%, while silver lost 1.4%. Gold, however is still up nearly 8% this year, and silver is up more than 30%.
