US gold futures extended previous losses early on Tuesday, hit by light speculative liquidation as traders shrugged off a strike by gold miners in South Africa and waited for an expected rise in interest rates later in the session which could bolster the dollar.
"We already know what's going to happen later today, so we're just seeing some fund buying. And speculative selling is keeping a little pressure on us early on," said one floor dealer.
By 10:09 am EDT (1409 GMT), gold for December delivery fell $1.50 to $438.80 an ounce on the New York Mercantile Exchange's COMEX division, dealing between $438.40 and $441.30.
Spot gold last brought $433.15/3.85 an ounce, down a shade from Monday's New York close at $434.60/5.40. Tuesday's afternoon fix in London was at $433.30.
In other news, strong investment demand has dominated the gold market through the first half of the year, though interest has waned since the first quarter when physical demand buoyed gold prices close to 2004's 16-year high, commodities consultant CPM Group said on Tuesday.
CPM's Gold Survey 2005 report forecast that the yellow metal price would average $434 an ounce this year, up 5.9 percent from 2004's average of $410.05, based upon the nearby contract in US gold futures.
IFR Markets analyst Tim Evans pegged technical resistance in COMEX December futures at $445 and $446 followed by $451, with downside support seen starting at $436.40 and $432.70.
COMEX September silver was off 4.0 cents at $6.975 an ounce, just off the bottom half of its early $6.960 to $7.05 trading range.
Spot silver eased to $6.95/6.98, from the prior close at $6.96/7.01.
On the board at NYMEX, October platinum rose $4.80 to $907 an ounce. Spot platinum reached $901/905.
September palladium fell $1.50 to $188.50 an ounce. Spot last was at $186/190.
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