On Monday gold futures inched lower, slipping back below the $1,200-an-ounce level as a stronger dollar offset concerns about Greece.
Gold for June delivery on Comex fell $6.50, or 0.5%, to $1,196.60 an ounce, May silver fell 19.4 cents, or 1.2%, to $16.035 an ounce, while May copper lost 3.33 cents, or 1.2%, to $2.741 a pound.
July platinum fell $15.40, or 1.3%, to $1,152.10 an ounce, while June palladium plunged $11.35, or 1.4%, to $771.60 an ounce.
“Bullish momentum for gold seems to have stalled around the $1205 area after the metal made a strong comeback as optimism regarding a U.S. interest rate hike as early as June drifted away,” said Alex Gurr, market analyst at FXTM, in a note.
On Monday the dollar regained strength against its rivals. Last week it had retreated after subpar economic data saw investors question when the Federal Reserve will deliver its first rate hike since 2006. A stronger buck can be weighing on commodities priced in the currency as it makes them more expensive to users of other currencies.
“Although the expectations remain high for the Federal Reserve to begin raising interest rates this year, I remain slightly upbeat on the prospect of gold rising higher because the recent data from the United States has hardly provided the Federal Reserve with pressure to begin rate hikes as early as was previously being priced into the U.S. dollar,” Gurr said.
Stocks were on track for a higher open in the U.S.
