Gold futures dropped by as much as $16 an ounce Friday as strength in the U.S. dollar dulled investment demand, but trimmed losses as some buyers took advantage of the price dips.
Gold for August delivery fell $7.20, or 0.5%, to $1,535.20 U.S. an ounce on the Comex division of the New York Mercantile Exchange after touching a low of $1,526.70 U.S. an ounce.
Silver tracked gold lower, with the July contract losing 72 cents, or 2%, to $36.68 U.S. an ounce. The contract had traded as low as $36.47 U.S. earlier.
Investors who bought gold on inflationary fears earlier this week, when energy prices spiked, were selling off Friday as oil futures and equities went south, said Adam Klopfenstein, a senior market strategist with Lind Waldock in Chicago.
Gold futures were holding their own as the lower prices enticed buyers back to the market, experts said.
The dollar index, which measures the performance of the U.S. unit against a basket of six major currencies, rose to 74.768 from 74.200 late Thursday.
Dollar strength tends to deter investors from buying dollar-priced commodities such as gold, as it makes them more expensive to holders of other currencies.
The greenback found support on fresh concerns about Greece’s debt problems. Read about Friday’s currencies action.
Earlier Friday, investors contended with Chinese May import-export data, which showed an expanded trade surplus from April but a slower pace of growth than expected.
The broader list of metals also declined Friday.
Copper for July delivery fell five cents, or 1.4%, to $4.05 U.S. a pound.
Platinum for July delivery declined $13.10, or 0.7%, to $1,831.40 U.S. an ounce, while the September palladium contract shed $1.50, or 0.2%, to $816.60 U.S. an ounce.
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