US gold futures sank to their weakest level this year on Friday, trading below $860 an ounce, as the dollar soared against major currencies, and other precious metals also tumbled. December gold was down $17.10, or 1.9 percent, at $860.80 an ounce on the Comex division of New York Mercantile Exchange at 10:22 am EDT (1422 GMT).
December ranged from $881.30 to $857.50, the lowest level since December 27. Bullion pummelled by the strength of the dollar combined with heavy weakness in other commodities, with no immediate sign of a bounce in the near term - HSBC Metals Analyst James Steel. Dollar surges against the euro and at a 7-month high against the yen, on track for its biggest one-day gain in four years. Rapid shrinkage of gold's open interest signals heavy long liquidation with no new short positions, and gold could move to a new trading range between $850 and $900, RBC Capital Markets Global Futures Vice President George Gero said.
Spot gold was quoted at $854.20/855.20, compared with $871.05/872.45 late Thursday. October platinum was down $27.70, or 1.6 percent, at $1,554.90 an ounce on general weakness of commodities.
Spot platinum was at $1,539.50/1559.50. September silver was down 79.7 cents, or 4.9 percent, at $15.460 an ounce, following gold's heavy losses. Ranged from $16.240 to $15.335 - a 2008 low. Spot silver was at $15.42/15.48, compared with $16.14/16.23 late Thursday. September palladium was down $12.00, or 1.8 percent, at $336 an ounce. Spot palladium was at $333.00/341.00.