Precious-Metals Futures Off

Precious-metals futures retreated Thursday under pressure from a sharp rally in the dollar.

Gold lost as much as $12.20 an ounce, silver was down 21 cents an ounce and platinum fell the $25 an ounce limit for daily trading before trimming the loss.

In other markets, cotton fell the limit, while energy futures, livestock, meat, soybeans and the grains were mostly lower.

The immediate cause for the stronger dollar and weaker metals was a Commerce Department report showing a healthy 4.9% increase in U.S. factory orders for large durable goods, analysts said.

In early trading, metals prices held up fairly well, said Bill O’Neill, an analyst with Elders Futures.

“But as the dollar began to strengthen further, it exerted massive pressure on the precious metals,” he said.

The stronger dollar conveyes the impression of a healthier economy, lessening the flight of investment money to metals.

While durable goods and wages were higher, the gross national product figure that came out on Wednesday was still fairly weak, noted Jack Barbanel, an analyst with Gruntal & Co.