New York silver, gold and platinum dropped Tuesday as investors sold the metals in light of falling crude oil prices, a sharply rising US dollar that reached its highest level in a month, and rallying US stocks. Increased US consumer confidence also helped to push down precious metal support.
Oil dropped to $122.19 a barrel, losing $2.54. Newly released data showed demand turned south in May with Americans driving 10 billion fewer collective miles in the month.
Silver lost 9 cents to close at $17.38 an ounce.
Platinum fell sharply to $1,745.40 an ounce for a daily loss of $31.30.
Gold dropped $11.20 to close to $916.50 an ounce — to mark a one-month low. Its intraday low was $913.80.
"Gold prices were under the potential threat of an outside factor dragging them down to the important $915 support area," said senior analyst Jon Nadler at Kitco Bullion Dealers.
"That market-moving factor turned out to be the combination of cause and effect fallout from rising US consumer confidence, a strengthening dollar and a fresh drop crude oil on the heels of waning demand.," said Nadler
A rising greenback makes commodities like silver, gold and platinum, more expensive for overseas investors.
Gold typically follows oil and moves opposite to the dollar, as a weakened dollar encourages investors to buy gold, also considered a hedge during times of high inflation and economic uncertainty.
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