Daily Gold Update

Source: Marketwatch

New York— Gold futures dropped more than 3% Tuesday in a broad-based commodities sell-off, as strength in the U.S. dollar exerted heavy selling pressure on the precious metal. Gold for June delivery tumbled $33.70, or 3.6%, to close at $887.80 an ounce on the New York Mercantile Exchange. The precious metal earlier fell to a low of $876.30. Other metals futures were also sharply lower, with platinum selling off 5.2%.

The Reuters-Jefferies CRB index, a benchmark barometer gauging the prices of major commodities, fell 0.3% to 385.58. "Everything from cotton to copper and soybeans to silver is off sharply," said Jon Nadler, senior analyst at Kitco Bullion Dealers. "The ever-weakening dollar had prompted many a fund to pile money into the sector since September last year, pushing values of some commodities well beyond fundamentals…. But now, as the dollar is staging somewhat of a comeback, even if a temporary one, the niche is being drained of money quite fast," Nadler said. See full story.