SAN FRANCISCO (MarketWatch) -- Gold futures fluctuated Monday, going back to negative territory, even as most commodity prices were on the rise.
Gold for December delivery, the most active contract, retreated $1.30, or 0.1%, to $1,182.50 an ounce on the New York Mercantile Exchange.
Other metals stayed in rally mode, with silver advancing more than 2%. But gold couldn't hold onto the positive momentum that buoyed most commodities as the dollar declined.
"This is quite a setback," said Frank Lesh, a trader and analyst at FuturePath in Chicago. "At the moment we don't have a catalyst to buy gold. People are seeing other, riskier assets. The propensity to own gold is just not there."
The dollar index (DXY 80.93, -0.61, -0.75%) , which compares the U.S. unit to a basket of six other currencies, declined 0.8% to 80.92. A rally for U.S. stocks, which followed upward moves for European and Asian stocks, was boosting oil futures and other commodities. Read more about stocks.
Bullion futures prices had kept their gains after a report showing that manufacturing in the U.S. slowed less than expected. The Institute for Supply Management reported its index feel to 55.5% in July from 56.2% in June, but the decline was not as sharp as forecast.
Economists had forecast a fall to 55%.
The recent decline in prices has served to attract more buyers of physical gold, said Commerzbank analyst Eugen Weinberg.
As one example, he cited the 6.56 metric tons of gold purchased in June by the Russia's central bank, which has added to its reserves every month this year since February.
Exchange-traded fund investors, however, keep dumping the metal. Holdings at SPDR Gold Trust, the largest ETF backed by gold, fell to 1,282 metric tons last week, from a peak of 1,320 metric tons in late June.
In other metals, palladium and platinum were near multi-month highs. Silver for September delivery jumped 37 cents, or 2.1%, to $18.38 an ounce. A close at these prices would be silver's highest since late June.
Palladium for September delivery added $12.20, or 2.4%, to $512.20 an ounce. Platinum for October delivery rose $22.60, or 1.4%, to $1,599.40 an ounce.
