Gold Plunges on Stronger Dollar, Weak Oil

Gold futures on the COMEX Division of the New York Mercantile Exchange ended much lower on Monday as a stronger dollar and weak crude oil reduced gold's appeal of hedging inflation. Silver and platinum both dropped sharply.

Gold price for December delivery lost 12.90 U.S. dollars, or 1.4 percent, to finish at 935.80 dollars an ounce.

The dollar rose to the highest level in more than two weeks against the euro as stocks tumbled globally on concern of the economic recovery, fueling the demand for risk hedge.

The greenback rate against euro appreciated 0.9 percent to 1.4077 dollars by the end of gold floor trading time in New York, touching a two-week low of 1.4046 dollars earlier in the session.

On the energy markets in New York, oil prices fell to new lows for the month as investors worried the consumer market signaled a dim prospect of economy recovery. Benchmark contract for September delivery fell 1.56 dollars to 65.95 a barrel when gold pit trading closed.

September silver finished at 13.975 dollars per ounce, down 74.7 cents. October platinum fell 39.10 dollars to 1222.60 dollars an ounce.