Gold futures fell in New York on Thursday as the dollar rallied against the euro. Other precious metals were mixed with platinum and palladium ending lower, while silver gained.

Gold for June delivery fell $5.40 to end at $942.90 an ounce on the New York Mercantile Exchange. The precious metal reached a record of $1,033.90 an ounce on March 17, when the euro and crude oil hit new record highs.

For the moment, $940 in gold appears supportive and the market could still aim for $960 before significant profit-taking emerges, said Jon Nadler, senior analyst at Kitco Bullion Dealers.

On Wednesday, gold futures rallied $16.30 to end at $948.30 an ounce.

The dollar's gyrations and crude oil's every price tick will continue to provide the overall direction for gold, Nadler said. Individual investors appear slightly skittish about jumping into fresh long positions at the moment and may hold back until a clearer uptrend is confirmed.

The euro declined from a record $1.5983 on speculation the European Central Bank may take steps to cap the currency's gains.

The dollar index, which tracks the performance of the greenback against a basket of major currencies, was up 0.4 percent to 71.65.

Given the increased concerns about inflation, coupled with recessionary fears in the U.S. and the effect this is having on the dollar, we would look for gold to remain firm, testing towards chart resistance located at $955 and $956, said James Moore, an analyst at, in a research note.

Also on the Nymex, May silver futures dropped 1.5 cents to $18.31 an ounce and June palladium rose $1.20 to $455.20 an ounce.

while July platinum futures gained $24.20 to $2,061.50 an ounce and May copper dropped 4.8 cents to $3.91 a pound.