Gold declines on profit-taking as dollar firms

Special Report:Global Financial Crisis

CHICAGO, Jan. 3 (Chinese media) -- Gold futures on the COMEX Division of the New York Mercantile Exchange dropped moderately due to investors profit-taking and strong U.S. dollar on the first trading day of 2009. Silver and platinum both ended higher.

Gold for February delivery fell 4.80 dollars, or 0.5 percent, to 879.50 dollars an ounce. March silver gained 19.5 cents to 11.49 dollars per ounce. April platinum closed at 946.7 dollars per ounce, up 5.2 dollars.

During the past several days, gold has accumulated enough profit-making space to release. Investors opted to take profit in consideration of the coming weekend and light post-holiday trading, analysts said.

The U.S. dollar swung two-sided on Friday, but it firmed gradually during the late day trading putting pressures on gold prices.

The continued tension in the Middle East would limit the pace of the gold price's decline, analysts added.