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Gold futures on Tuesday extended losses into second day, falling 3%

Posted June 10, 2008

Baltimore — (TFN): Ouch! Gold futures on Tuesday extended stiff losses into a second day, falling 3% and coming under heavy selling pressure as the U.S. dollar surged against other major currencies.

Gold for August delivery dropped $26.90 to end at $871.20 an ounce on the New York Mercantile Exchange.
“I think the issue with gold is the continuation of the rally to the long side into the dollar,” said Zachary Oxman, a senior trader at Wisdom Financial.

“The dollar/gold trade is negatively correlated right now, and with Bernanke’s slew of recent comments related to the dollar and Trichet’s comments about inflation, the trade is strongly propping up the dollar and taking out long side trades in gold and other major market currencies,” Oxman said.

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