NY gold futures fall with strong dollar

CHICAGO, Jan. 5 (Chinese media) -- Gold futures in New York

fell sharply on Monday as the U.S. dollar rebounded.

The dollar index gained as much as 1.6 percent while

market participants expected President-elect Barack Obama's fiscal stimulus

package would help the United States recover from the economic recession. Obama

has gone to Washington waiting for his inauguration on Jan. 20.

Gold futures for February delivery forged an

aggressive early washout and then fought its way out from under the selling

tide. While prices generally remained ultra weak throughout the trading session,

February gold had managed to bounce by as much as 18 dollars an ounce off the

early lows.

February gold declined 21.70 dollars, or 2.5 percent,

to 857.80dollars an ounce on the New York Mercantile Exchange.