By Virginia Harrison, MarketWatch
SYDNEY (MarketWatch) — Gold futures retreated in electronic trading Tuesday, with the precious metal joining in with a broad fall for the metals complex as the U.S. dollar turned higher.
Gold for December delivery GCZ2 -0.66% lost $13.70, or 0.8%, to trade at $1,661.90 an ounce on the Comex division of the New York Mercantile Exchange during Asian hours.
Commodity and equity markets faced mild selling pressure in Tuesday’s Asia session, as global investors looked ahead to a key meeting of central bankers on Friday. Read more on Asia stocks.
Federal Reserve Chairman Ben Bernanke and European Central Bank President Mario Draghi are scheduled to speak at the Fed symposium. Read Fed meeting preview.
“Should Mr. Bernanke’s speech distance the Fed from further monetary easing, the gold market could abruptly, if temporarily, decline,” HSBC Securities analyst James Steel wrote in a research note.
Steel at HSBC also noted gold prices faced possible pressure from a decline in other commodity futures.
“Commodity prices have provided support for gold, but a drop in grain and oil prices also could unhinge gold,” he wrote.
The broader metals complex tracked gold lower in electronic trading, with notably sharp falls for palladium and silver.
Palladium for September delivery PAU2 -1.35% declined $10.35, or 1.6%, to $644.40 an ounce. Silver for September delivery SIU2 -1.27% dropped 1.5%, or 0.5%, to at $30.59 an ounce.
Platinum for October delivery PLV2 -1.27% lost $19.70, or 1.3%, to $1,533.50 an ounce, while September copper HGU2 -0.48% retreated 3 cents, or 0.8%, to $3.45 a pound.
A stronger dollar provided a headwind for metals, with the ICE dollar index DXY -0.05% , which tracks the U.S. unit against six major currencies, rising to 81.735, from 81.696 in North American trading late Monday.
A stronger greenback is a negative for dollar-priced commodities including metals, as it makes them more expensive to holders of other currencies.
Virginia Harrison is a MarketWatch reporter based in Sydney.
