Gold values fall in wake of oil prices

Gold futures were lower in New York on Tuesday as funds sold due to strength in the dollar and falling oil prices. Expiration of options increased price volatility. Trade was heavy at an estimated 85,000 contracts on the day.

December gold contracts on the COMEX index at the New York Mercantile Exchange ended the day down by $3.30 at $466.20 per troy ounce after trading in a range between $470.90 and $461.20 per troy ounce during the day.

Prices fell then came back twice during the day, partly as a result of last-minute adjustments before October options expired at the end of the trading day.

With the dollar up and oil prices down, gold did not look nearly as inviting to investors looking for a hedge against inflation.

In other metals, COMEX silver contracts for December fell 3.7 cents to $7.328 per ounce after trading in a range of from $7.40 to $7.24 during the day.

Nymex platinum contracts for October gained 50 cents to $918 per ounce. December palladium gained $2 to $199.75 per ounce.