Gold futures took a steep drop on Monday, to their lowest level in 2-1/2 weeks, as the dollar advanced on the euro and a 2 percent drop in crude oil prices diminished its use as a hedge against inflation. December gold slipped $14.20, or 1.50 percent, to $934.50 an ounce on the COMEX division of the New York Mercantile Exchange.
Range extended down to $931.30, lowest since July 30, from $950.40. Investors sold gold along with other metals and commodities as investors returned to a more risk-averse posture, said traders. COMEX estimated 9:00 am (1300 GMT) volume at 53,935 lots. Spot gold quoted at $931.35 an ounce by 9:33 am (13:33 GMT), down from $945.25 in late Friday dealings in New York. London morning gold fix set at $937.50 an ounce, down $16 from Friday.
September silver plummets 72.2 cents, or 4.90 percent, to $14.00 an ounce. Trading band reaches down to $13.95, a 5 percent decline to a level last seen August 3, from high at $14.73 an ounce. September silver reached a two-month high on Friday. Silver gets hit with double whammy as speculators sell with industrials on doubts about economic recovery and with precious metals receiving blows from dollar strength.
COMEX estimated 9:00 am (1300 GMT) volume at 16,403 lots. Spot silver slides to $13.95 an ounce from $14.65 an ounce in Friday's late business. London silver fixed sharply lower at $14.130 an ounce. October platinum tumbles with other precious metals, losing $27.60, or 2.16 percent, at $1,234.10 an ounce as metals are sold across the board. Spot platinum drops to $1,224.50 from Friday's late quote at $1,257 an ounce. September palladium slipped $5.25, or 1.89 percent, to $272.0 an ounce, falling with platinum. Spot palladium softens to $269 from $273 in late Friday business.