Investing.com – Gold futures turned sharply lower on Tuesday, dropping to a seven-day low as a broadly stronger U.S. dollar reduced the appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,482.75 a troy ounce during U.S. morning trade, slumping 0.5%.
It earlier fell as much as 0.9% to USD1,475.85 a troy ounce, the lowest price since May 6.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.26% to hit 75.88 after a string of worse-than-expected U.S. data sapped investor’s appetite for riskier assets.
A stronger dollar saps demand for raw materials as an alternative investment and makes metals priced in the currency more expensive in terms of other monies.
Meanwhile, Soros Fund Management, a hedge fund run by billionaire financier George Soros sold almost its entire USD800 million stake in bullion in the first quarter, according to a regulatory filing.
Fellow billionaire investor John Paulson retained his stake in the SPDR Gold Trust and boosted holdings of mining companies including Barrick Gold and AngloGold Ashanti.
Despite the pullback, gold prices were expected to remain supported amid ongoing concerns over the euro zone’s debt crisis after the head of the euro zone’s finance ministers, Jean-Claude Juncker, said there was a need to move towards what he called a "soft restructuring" of Greek debt.
Gold’s earlier gains came amid strong physical demand in Asia. Buyers in India, the world’s largest gold consumer, bought the precious metal as one of the major gold-buying festivals of Akshaya Tritiya began and as India's wedding season gathered pace.
Elsewhere, silver for July delivery climbed 0.23% to trade at USD33.64 a troy ounce during U.S. morning trade, after rising by as much as 2.1% to a daily high of USD34.37.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,482.75 a troy ounce during U.S. morning trade, slumping 0.5%.
It earlier fell as much as 0.9% to USD1,475.85 a troy ounce, the lowest price since May 6.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.26% to hit 75.88 after a string of worse-than-expected U.S. data sapped investor’s appetite for riskier assets.
A stronger dollar saps demand for raw materials as an alternative investment and makes metals priced in the currency more expensive in terms of other monies.
Meanwhile, Soros Fund Management, a hedge fund run by billionaire financier George Soros sold almost its entire USD800 million stake in bullion in the first quarter, according to a regulatory filing.
Fellow billionaire investor John Paulson retained his stake in the SPDR Gold Trust and boosted holdings of mining companies including Barrick Gold and AngloGold Ashanti.
Despite the pullback, gold prices were expected to remain supported amid ongoing concerns over the euro zone’s debt crisis after the head of the euro zone’s finance ministers, Jean-Claude Juncker, said there was a need to move towards what he called a "soft restructuring" of Greek debt.
Gold’s earlier gains came amid strong physical demand in Asia. Buyers in India, the world’s largest gold consumer, bought the precious metal as one of the major gold-buying festivals of Akshaya Tritiya began and as India's wedding season gathered pace.
Elsewhere, silver for July delivery climbed 0.23% to trade at USD33.64 a troy ounce during U.S. morning trade, after rising by as much as 2.1% to a daily high of USD34.37.