Gold Futures Slide; Dollar Finds Traction

Benchmark bullion futures close down $17.90 at $907.90 an ounce on the Comex division of the New York Mercantile Exchange.
By Simon Constable ,

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%.

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