By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) — Gold futures pushed lower in European trading hours on Tuesday, as the dollar held onto gains amid continued concern about political upheaval in Europe.
Gold for June delivery GCM2 -0.71% fell $11.30, or 0.7%, to $1,627.30 an ounce.
The precious metal closed down $6.10, or 0.4%, to $1,639.10 an ounce on the Comex division of the New York Mercantile Exchange on Monday.
The ICE dollar index DXY +0.25% , meanwhile, traded at 79.843, up from 79.611 in late North American trade Monday.
The dollar continued to rise from Monday as investors sought what are perceived as less-risky assets after weekend elections in parts of Europe. Elections on Sunday resulted in the defeat of French President Nicolas Sarkozy and ushering in of Socialist challenger Francois Hollande.
In Greece, meanwhile, parliamentary elections on Sunday resulted in major defeats for the mainstream parties, which are struggling to form a majority.
A stronger dollar pressures dollar-denominated commodities as it makes them more expensive for holders of other currencies.
Other commodities such as oil were declining, while European stock markets traded lower and U.S. stock-market futures pointed to a weaker open for Wall Street.
The broader suite of metals futures tracked gold lower on Tuesday.
Silver for July delivery SIN2 -1.62% retreated 41 cents, or 1.4%, to $29.71 an ounce. Platinum for the same month’s delivery PLN2 -0.50% was off $7.90, or 0.5%, to $1,522.20 an ounce.
June palladium PAM2 -1.85% fell $9.80, or 1.5%, to $637.90 an ounce.
Copper for June HGN2 -2.01% slipped 7 cents, or 1.8%, to $3.71 a pound.
Barbara Kollmeyer is an editor for MarketWatch in Madrid.
