Gold futures struggled to hold their ground above $1,600-an-ounce Monday

Gold futures struggled to hold their ground above $1,600-an-ounce during Asian trading hours Monday, losing further ground after last week’s 6.9% tumble as the U.S. dollar strengthened.

The precious metal’s contract for delivery in February   fell $2.60, or 0.2%, to $1,595.30 an ounce, after rising as high as $1,608.20 earlier in the day.

The contract had climbed 1.3% on the Comex division of the New York Mercantile Exchange during regular-session trade Friday, but still ended the week with steep losses amid year-end selling by funds and tight liquidity in European interbank money markets.

The latest drop came as the U.S. dollar strengthened appreciated against major global currencies.

The greenback gains came as European Central Bank President Mario Draghi warned in an interview with Financial Times about the costs of a euro-zone break-up. Struggling euro-zone nations that leave the currency bloc would face still greater economic pain, Draghi reportedly said in the interview.

The dollar index   , which measures the U.S. unit against a basket of six global currencies, rose to 80.303 from 80.216 in North American trade late Friday.

Among other precious metals, benchmark March futures for silver fell 1.3% to $29.30 an ounce, and the palladium   contract for the same month eased 0.3% to $623.45 an ounce.

January platinum futures  declined 0.4% to $1,412.30 an ounce.  - MarketWatch

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Posted by admin on Dec 19 2011. Filed under Gold price. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry