US gold futures hit a two-week low early on Wednesday, losing 2.5 percent as a sharp rally in the dollar dampened bullion's investment appeal as a hedge against paper currency depreciation. Gold for February delivery down $27.70, or 2.4 percent, at $1,112.30 an ounce at 10:29 am EST (1529 GMT) on the COMEX division of the New York Mercantile Exchange.
Range from $1,141.70 to $1,109.50 - the lowest since January 13. Gold futures pummelled as the euro hits session lows against the dollar on concerns over Greek debt. Despite bullion's losses, underlying strength seen in the metal considering the magnitude of dollar's rise, said George Nickas at FC Stone.
News that China raising bank reserve ratio curbed economic optimism, lessening gold's inflation hedge appeal, said traders. Gold/oil ratio 14.41 against previous session's 14.42. COMEX estimated 10 am volume at 148,576 lots. Spot gold $1,112.80 an ounce, against the previous session's late quote of $1,137.95.
March silver down 74.3 cents, or 4 percent, at $18.055 an ounce, down with gold. Range from $18.870 to $17.970 - a two-week low. COMEX estimated 10 am volume at 31,012 lots. Spot silver at $18.02 an ounce, versus the previous session's late quote of $18.73.
NYMEX April platinum down $21.80, or 1.3 percent, at $1,617.60 an ounce on profit taking after solid gains based on investment demand related to US exchange traded funds. In early sessions, platinum futures hit session high $1,654.70, their loftiest level since August 2008. Spot platinum was at $1,614 an ounce. March palladium down $7.45, or 1.6 percent, at $454.50 an ounce, down with platinum. Spot palladium was at $464 an ounce.
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