RTTNews - Gold plunged more than 2% as crude oil led a drop across the board for commodities. The decline took the metal to its lowest closing level in more than two months.
August-dated gold futures dropped to $909.30 per ounce, down $19.80 on the session. The metal fell as low as $904.80 and moved below a support level.
Crude oil prices fell $2.79 to finish at $60.14 per barrel, the lowest finishing level since mid-May. Oil touched as low as $60.01.
The dollar rose to a two-week high against the euro and a monthly-best against the sterling as traders favored lower-yielding currencies amid economic worries. Gold usually moves opposite the dollar because of the precious metal's hedge appeal.
There was no major economic data from the U.S. as investors await the start of earnings season with Alcoa's report after the market close today. Initial jobless claims and wholesale inventories data are due tomorrow morning.
Chicago Federal Reserve Bank President Charles Evans called on the Federal Reserve to lay the groundwork for a reduction of their bloated balance sheet, in light of economic conditions that continue to improve. Speaking at the Chamber of Commerce of St. Joseph County in South Bend, Ind., Evans predicted modest growth for the economy by the end of the year.
In other metal trading, silver fell 36.8 cents to $12.852 an ounce and copper slipped 6.65 cents to $2.159 a pound.
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