Gold futures dropped in New York on Thursday, as the U.S. dollars continued its rally turn against the euro.
Market players remained mindful of yesterday's calls for a probable global economic slowing by the IMF and of Ben Bernanke's more pessimistic tone about the US economy during congressional testimony, said Jon Nadler, a senior analyst at TheBullionDesk.com, in a research note.
Gold futures for June delivery dropped $4.40, or 0.5 percent, to $895.80 an ounce at 10:23 a.m. on the Comex division of the New York Mercantile Exchange.
In the previous trading session, added $12.40, or 1.4 percent, to finish at $900.20 an ounce after hitting a high of f $903 an ounce during intra day trading.
The U.S. dollar was at 0.6398 against the euro and 0.0063 against the Japanese yen.
A slowdown of growth to a single-digit rate [forecasts call for a drop to 9.4% growth this year] will shock the markets, we believe, and may well trigger a retracement of prices for energy and industrial commodities, said Carl Weinberg, chief economist for High Frequency Economics, in a research note this week.
Also on the Nymex, May silver futures lost 20 cents to $16.98 an ounce, while July platinum gained $12.20 to $1,976.80 an ounce. June palladium gained $2.20 to $445.95 an ounce. May copper futures dropped 3 cents to $3.85 a pound.