Gold drops for third session in row as dollar firms, equity drops

Gold futures on the COMEX Division of the New York Mercantile Exchange extended the losing streak into a third consecutive session on Wednesday, as a stronger U.S. dollar reduced the appeal of the precious metal as an alternative asset, the decline in the equity market also added extra pressure. The most active gold contract for Dec. delivery lost 5.8 dollars, or 0.4 percent, to 1,647 dollars per ounce. A trader mentioned the precious metal has rallied earlier Wednesday, as the greenback suffered a major setback against other major currencies, but it gave back earlier gains as the U.S. dollar bounced off midday and U.S. equities retreated from earlier highs. The dollar index bulls have the overall near-term technical advantage, which has been a major underlying bearish factor for the precious metals recently, as the stronger dollar makes dollar- denominated gold more expensive for buyers holding other currencies. Gold also suffered extra pressure, while equities dropped, as investors unloaded holdings to raise cash and cover losses elsewhere in their portfolios. Meanwhile, market analysts mentioned that most of investors has been taking an "wait and see" attitude toward the bullion, before the euro zone's summit scheduled for the weekend, as recent volatility in gold prices diminished its appeal as a safe haven. Silver for Dec. delivery lost 55.4 cent, or 1.7 percent, to 31. 277 dollars per ounce. Platinum for January delivery trimmed 17.6 dollars, or 1.1 percent, to 1,523.1 dollars per ounce.