New York gold futures dropped 2 percent in high-volume trade on Tuesday but held above $900 an ounce as sharp oil losses and a stronger dollar prompted heavy liquidation in bullion. The June gold contract on Comex division of New York Mercantile Exchange down $18.40, or 2 percent, at $907.40 an ounce at 10:33 am EDT (1433 GMT).
June futures tumbled earlier to $903.30, a one-week low. The session high was $930.60.Gold's inflation-hedge role decreased as oil turns sharply lower to below $130 a barrel. Comex estimated 10:00 am volume at a busy 164,827 lots. Frantic trading pace seen early in spite of the US Memorial Day holiday on Monday.
Spot gold was quoted at $907.90/908.90 an ounce, compared with $925.20/926.60 in late Friday trade. July platinum was down $28.30, or 1.3 percent, at $2,148.00 an ounce.Heavy selling in the gold futures lends pressure to the platinum market.Spot platinum was quoted at $2,135/2,145.
September palladium was down $8.25, or 1.8 percent, at $453.00 an ounce. Spot palladium was quoted at $443/448.July silver futures were down 65.0 cents, or 3.6 percent, at $17.64 an ounce. Ranged $18.375 to $17.46, a one-week bottom.Spot silver was at $17.55/17.61 an ounce versus the $18.18/18.26 late quote of Friday.