US gold futures tumble more than 2 percent in volatile trade early on Monday, trading just above $880 an ounce as a sudden rise in the dollar triggers chart-based sell-stops and heavy long liquidation. August contract on COMEX division of New York Mercantile Exchange down $20.10, or 2.2 percent, at $883.60 an ounce at 10:25 am EDT (1425 GMT). August futures range from $909.70 to $877.40.
Selling related to COMEX gold option expiration and a key interest rate decision by the Federal Reserve this week pummel gold futures. said RBC Capital Markets Global Futures Vice President George Gero. Heavy redemption in gold market by hedge funds for cash needs, as well as technical selling below $900 an ounce cited, said CPM Group precious metals analyst Carlos Sanchez. Estimated 10 am gold volume a busy 96,557 lots. Spot gold at $881.65/882.65, compared with $901.35/902.75 in late Friday trade.
July platinum down $25.40, or 1.2 percent, at $2,037.00 an ounce, weighed down by weaker gold prices. Spot platinum at $2,033.50/2,053.50. September palladium down $4.35 at $474.85 an ounce. Spot palladium was quoted at $466.50/474.50. July silver follows bullion's weakness, down 67.7 cents, or 3.9 percent, at $16.720 an ounce. Range from $16.525 to $17.520. Spot silver at $16.67/16.72, compared with $17.36/17.43 late Friday.
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