Precious metals decline on strong dollar, credit market hopes

Precious metals prices were substantially lower on Tuesday on a stronger dollar and as investors hoped that the credit crisis might be coming to an end.

Gains also came on a rally in equities markets in New York.

June gold dropped $33.90 to $887.60 per troy once, the first time gold had been below $900 per troy ounce in New York in six weeks.

Analysts were of the opinion that recent price volatility has reduced demand for precious metals.

May silver was down 40 cents to $16.91 per troy ounce while June platinum fell $105.60 to $1,937.80 per troy ounce.

In morning trade, meanwhile, palladium dropped $20.05 to $430.15 per troy ounce.