Gold sinks on stronger dollar, commodity woes – MarketWatch

Gold futures turned lower as a stronger dollar and a global rout in commodities weighed on the precious metal in early Tuesday trade.

Gold futures for December delivery

GCZ5, +0.06%

 gave up $3.60, or 0.3%, to trade at $1,128.10 an ounce, a day after the yellow metal recorded its largest single-day point and percentage drop since early September. Meanwhile, December silver

SIZ5, +0.94%

 gained 4 cents, or 0.3%, to trade at $14.58 an ounce.

The slide in the metal comes amid a broad selloff in commodities that has sent many metals, including copper, to monthly and multiyear lows on fears that China, one of the biggest importers of metals, is facing a sharp economic slowdown.

Expectations the Federal Reserve may soon raise interest rates and the believe that the U.S. may be in better shape than the rest of the world may also be delivering a boost to the dollar. The ICE U.S. Dollar Index

DXY, +0.05%

which is a measure of the greenback’s strength against a basked of six rival currencies, was up 0.2% early Tuesday.

A stronger buck weighs on dollar-denominated assets like gold, making them more expensive to investors purchasing commodities in other currencies.

Looking ahead, investors will be focusing on U.S. data including a reading of consumer confidence, set to be released at 10 a.m. Eastern, to help determine the path for metals including gold.

In other metals, October platinum

PLV5, -0.99%

which has hit new multiyear lows on the back of Volkswagen Inc.

VLKAY, -1.50%

VOW3, -1.85%

VOW3, -1.85%

VOW3, -1.98%

 emission-test scandal, was down $9.10, or 1%, to $913.10 an ounce, while December palladium

PAZ5, +0.07%

a beneficiary of the German auto maker’s problems, dipped 85 cents, or 0.1%, lower to $651 an ounce.

December high-grade copper

HGZ5, +0.33%

 picked up as penny, or 0.2%, to $2.257 a pound.