US gold futures plunge as much as 3 percent amid heavy volume on Monday, ending just above $880 an ounce as a sudden rise in the dollar triggers heavy long liquidation and chart-based sell-stops.
GOLD: August contract on COMEX division of New York Mercantile Exchange settles down $16.50, or 1.8 percent, at $887.20 an ounce. August futures range from $909.70 to $877.40 - a one-week bottom. A quick surge in the dollar against the euro in early morning prompts massive long liquidation by funds in gold market.
Bullion cuts losses on stronger oil as Nigerian supply disruptions and escalating tensions between Israel and Iran outweighed Saudi Arabia's pledge to raise output and keep markets well-supplied. Bullion held by SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose slightly to 615.95 tonnes on Friday from 614.41 tonnes on Thursday, following a sharp upward move last week. Estimated 1 pm EDT (1700 GMT) gold volume a busy 136,538 lots, options turnover at 14,007 lots. Spot gold at $882.85/884.05 at 2:15 am, compared with $901.35/902.75 in late Friday trade.
PLATINUM: July finishes down $23.20, or 1.1 percent, at $2,039.20 an ounce, weighed down by weaker gold prices. Spot platinum at $2,033.50/2,053.50.
PALLADIUM: September palladium closes down $4.95, or 1 percent, at $474.25 an ounce. Spot palladium was quoted at $464.00/472.00.
SILVER: July follows bullion's weakness, ends down 60.7 cents, or 3.5 percent, at $16.790 an ounce. Range from $17.520 to $16.525 - a one-week bottom. Spot silver at $16.72/16.80, compared with $17.36/17.43 late Friday.