Gold Futures Slide; Dollar Finds Traction
Gold prices were tumbling Tuesday as the greenback bounced and oil prices retreated.
Benchmark bullion futures closed down $17.90 at $907.90 an ounce on the Comex division of the New York Mercantile Exchange. The price of gold tends to move in the same direction as that of oil, but in the opposite direction to the value of the dollar.
"Volatility looks set to remain high in the coming days with the dollar and oil
continuing to provide much of the metal's intraday direction," writes the precious metals team at
TheBullionDesk.com
in London, in a recent research report.
The
SPDR Gold Trust
(GLD) - Get Report
, which currently holds 592 tons of solid gold bars, was sliding 1.8% in recent trading on the New York Stock Exchange.
As for the precious metals patch, shares of
Iamgold
(IAG) - Get Report
were dropping over 4%, despite news of "promising drilling results."
Explorer
NovaGold Resources
(NG) - Get Report
was down more than 6%, while
Yamana Gold
(AUY) - Get Report
was off 4.6%, dragged down by the weakening metal price.
In the foreign-exchange market, one euro was buying $1.5724, down from $1.577 on Monday. The dollar was trading for 104 Japanese yen, up from 103.4 yen previously. The British pound was selling for $1.9756, down from $1.9813.
The
CurrencyShares Euro Trust
(FXE) - Get Report
and the
CurrencyShares Japanese Yen Trust
(FXY) - Get Report
were declining 0.3% and 0.7%, respectively. The
CurrencyShares British Pound Sterling
(FXB) - Get Report
was losing 0.3%.