Gold futures on the Comex division of the New York Mercantile Exchange dropped more than 3 percent in heavy trading Friday, hurt by a dollar rise, crude oil drop and upbeat outlook for the global stock markets. June gold was down $31.10 or 3.3 percent at $911.80 an ounce by 10:12 am EDT (1412 GMT).
Range from $949.80 to session low of $909 which was the cheapest since April 9. Dollar rose sharply after Citigroup's results were less bleak than many had feared, weighing heavily on bullion. US crude down $1.27 at $113.59 per barrel, denting gold's appeal as an inflation hedge.
Recent jump in London interbank offered rate (LIBOR) cited for gold's fall, RBC Capital Markets Global Futures' George Gero said. US stocks up 1.5 pct on positive news from Citigroup, Google, lowering gold's appeal as alternative investment. Gold's long-term prospect in question if the dollar is set to bottom this year, UBS Investment Bank said.
Spot gold was quoted at $909.20/910.00, compared with $938.90/939.70 at the close Thursday. July platinum was down $27 or 1.3 percent at $2,034.50 an ounce. Platinum group metals dragged down by gold's decline. Spot traded at $2,017/2,027. June palladium was down $8.85 or 1.9 percent at $452.35 an ounce.
Spot at $450/455. May silver down 76.5 cents or 4.1 percent at $17.540 an ounce. Ranged $17.375 to $18.480. Spot silver was at $17.57/17.62 against Thursday's late quote of $18.23/18.28.
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