Gold drops $17 on session

The price of gold was lower at the end of the floor trading session in New York on Monday as the US dollar strengthened, cutting demand for the metal as a safe alternative place to put cash.

Additionally, some analysts took the news that G20 leaders said at a meeting over the weekend that they were determined to cut budget deficits to mean that interest rates could rise, which could hurt demand for gold.

August gold ended the session down $17.60 to $1,238.69 per troy ounce, but only after hitting an intraday high of $1,263.70 per troy ounce, just 0.2 percent below the intraday record high of $1,266.50 per troy ounce reached last week.

Still, most of the demand for gold is from investors as demand falls for its use in making gold, highlighted by May’s gold imports into India, which were at just 16 to 17 tonnes compared to 34 tonnes in April.

July silver, meanwhile, dropped 43 cents to $18.67 per troy ounce, while July platinum fell $4.80 to $1,565.60 per troy ounce and September palladium was $5.45 lower to $472.45 per troy ounce.

The declines for platinum and palladium came after earlier gains on new data from the Commerce Department showing that the US savings rate was at its highest level in 8 months in May and that personal incomes were also up in the month.

Among base metals, copper declined after early gains, ending the session 2 cents lower at $3.07 per pound.