US gold down

21 Oct, 2010

US gold futures ended nearly 3 percent lower on Tuesday, pummelled by a soaring dollar after China unexpectedly raised interest rates and the United States said it would not devalue the greenback. COMEX December gold futures settled down $36.10, or 2.6 percent, at $1,336 an ounce on the COMEX division of the NYMEX. Ranged from $1,371.70 to $1,328.40 per ounce - the lowest since October 8.
Gold volume estimated at 260,000 lots, about 72 percent above its 30-day average, preliminary Reuters data showed. Spot gold fell 2.6 percent to $1,332.45 an ounce by 3:55 pm EDT (1955 GMT) COMEX December silver ended down 63.30 cents, or 2.6 percent, at $23.780 an ounce as gold's decline triggered heavy profit-taking. Ranged from $24.505 to $23.270 an ounce.
Estimated silver turnover was a heavy 81,200 lots, about 80 percent above its 30-day average, preliminary Reuters data showed. Silver, which outperformed gold during the latest three-month leg of the rally, dropped 4.2 percent to $23.34 an ounce, its largest one-day fall since July.
NYMEX January platinum finished down $20.70, or 1.2 percent, at $1,677.60 an ounce on broad-based equity and commodity markets sell-off. Spot platinum fell 1.8 percent to $1,660. NYMEX December palladium closed down $9.65, or 1.6 percent, at $578.45 an ounce, as investors took profits, said traders. Spot palladium was trading down 2.5 percent at $569.00.

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