US gold futures dropped to a two-week low Tuesday, extending the previous session's decline as a sharp dollar rally and optimism toward the economy dented bullion's appeal as an alternative investment. Gold for February delivery dropped $10.90, or 1.3 percent, to $846.90 an ounce at 10:10 am EST (1510 GMT) on the COMEX division of the New York Mercantile Exchange.
The range spanned $859.40 to $838.80 an ounce - the weakest price since December 24. COMEX estimated 9:00 am volume at 36,272 lots, option turnover at 3,367 contracts. Spot gold was at $842.92 an ounce, down 1.8 percent from the last trade on Monday. March silver fell 14.5 cents, or 1.4 percent, to $11.125 an ounce on gold's weakness and selling related to index rebalancing.
The range was $10.790 to $11.240. COMEX estimated 9:00 am volume at 5,127 lots. Spot silver was quoted at $11.09 an ounce, down 1.2 percent from its previous session close. Silver was fixed in London at $10.85 an ounce. NYMEX April platinum rose $9.40, or 1 percent, to $967.00 an ounce, after hitting its highest level in nearly three months.
Spot platinum was quoted at $954.00 an ounce, up 0.9 percent higher from its last finish. NYMEX March palladium jumped $12.05, or 6.5 percent, to $197.00 an ounce, on pent-up buying and platinum's strength. Spot palladium was quoted at $193.00 an ounce, 6.5 percent higher than its previous close on Monday.