Gold prices extended losses to a fourth session Thursday though the decline was far less than the previous day's plunge as weaker crude oil and copper prices offset support from dollar weakness.
Unless gold can reverse recent losses it will lose money this quarter, the first time that has happend in more than three years.
Crude oil fell to its lowest level in more than a month on weakening U.S. manufacturing. West Texas Intermediate was $95.32 per barrel in mid-afternoon trading. Copper prices also fell, reinforcing a widespread retreat from commodities.
Traders continued their so-called dash for cash as the year came to an end and from a need to cover losses from other investments.
The dollar fell 0.4 percent to 80.3 against a basket of major currencies. Dollar weakness increases the buying power of investors who use non-U.S. currencies.
If you look at the U.S. dollar and how it represents a safe-haven play, by default all commodities are under pressure, James Barratt, managing director at Commodity Broking Services, told MarketWatch.
Also gold is one commodity which has held up, so it has had the furthest to fall. We saw an initial break and, when we went through $1,630, we saw larger orders coming into the market. We feel the larger orders are a direct response to people exiting the exchange-traded funds and stop-loss orders going off.
Gold for February delivery fell $9.70 to $1,577.20, while gold for immediate delivery was off $1.76 to $1,572.63.
Silver for March delivery rose 34 cents to $29.27, while silver for immediate delivery added 13 cents to $29.24.