Gold prices plunged to a four-month low Thursday, extending their losses as a stronger dollar gave investors reasons to sell the metal traditionally viewed as a hedge against inflation. Other commodities traded broadly lower for a second straight session, with rice futures retreating from a record and crude oil, copper and silver also falling. The dollar gained against the euro for a second day after a report showed a surprise drop in the number of Americans seeking jobless claims. Claims for unemployment benefits fell by 33,000 last week to 342,000, the Labor Department said. That contrasted with expectations from economists, who had predicted claims would rise by 3,000. The euro bought $1.5684 Thursday, down from the $1.5896 it bought late Wednesday. On Tuesday, the dollar fell to a record low $1.6018 against the 15-nation currency. Gold futures reacted sharply, with the June contract dropping $19.60 to settle at $889.40 an ounce on the New York Mercantile Exchange, after earlier falling as low as $884.50, its lowest level since Jan. 10. Gold has fallen 8 percent since March and is nearly $150 off its all-time high of $1,038.60. Gold investors «have decided that there are changes in the atmosphere, with the No. 1 being the improvement in the dollar,» said George Gero, vice president at RBC Capital Markets Global Futures in New York. «I don't think it's the beginning of the end (for gold) but it's certainly making people think twice about holding long positions.»
