US gold futures dropped further Tuesday, trading below $890 an ounce, amid widespread weakness in commodities and a higher stock market, but platinum bounced after its recent pullback was seen as oversold, traders said. December was down $19.60, or 2.2 percent, at $888.30 an ounce on the Comex division of New York Mercantile Exchange at 11:03 am EDT (1503 GMT).
December ranged from $903.90 to $886.90. Open interest has dropped sharply and commodities are out of vogue as bullion investors reallocate money to a more attractive equity sector, Comex floor trader Jonathan Jossen said. Comex estimated 10am gold volume at 76,372 lots. Spot gold was quoted at $878.60/879.60, compared with $895.55/896.95 late Monday.
September silver was down 46.0 cents, or 2.7 percent, at $16.680 an ounce. Ranged from $17.030 to $16.575, a six-week low. Spot silver was at $16.64/16.68, compared with $17.00/17.05 late Monday. October platinum was up $9.00 at $1,572 an ounce, bouncing back from a 7-month bottom of $1,530.20 set early. September palladium was up $3.55, or 1 percent, at $358 an ounce, tracking platinum's strength. Spot palladium was at $353.50/361.50.