Gold futures on the COMEX Division of the New York Mercantile Exchange Tuesday suffered additional drop, marking the third straight decline, amid widespread selloff. Besides, the strengthening U.S. dollar also helped weigh on the commodities.
The most active gold contract for June delivery shed 10.6 U.S. dollars, or 0.7 percent, to 1,480 dollars per ounce, the lowest level in five weeks.
Market analysts said the commodities markets have suffered widespread selloff in the recent trading sessions, as investors began to cash in their positions after rapid hikes in the prices make commodities seem somewhat too high.
Besides, the strengthening U.S. dollar also added to the negative tone. The U.S. dollar continues to show strength off the euro, as the Prime Minister of Luxembourg said in a recent meeting that "Greece must make the effort, because its medium to long term debt at the moment is unsustainable."
A stronger dollar is negative for commodities as it makes them more expensive to holders of other currencies.
Moreover, a trader noted that the precious market also suffered some pressures from late Monday's news that Soros Fund Management reduced its stake in gold exchange-traded funds.
Silver for July delivery further retreated 64.1 cents, or 1.88 percent, to 33.491 dollars per ounce. In contrast, platinum for July delivery added one dollar, or 0.06 percent, to 1,761 dollars per ounce.
