Gold down on strong US dollar

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Monday as the U.S. dollar showed strength amid a political crisis in Greece which pushed the euro down.

The most active gold contract for February delivery lost 13.4 U. S. dollars, or 1.12 percent, to settle at 1,181.90 dollars per ounce.

Meanwhile, the U.S. Dollar Spot Index rose by 0.18 percent to 90.1910 in New York market. The index is a measure of the strength of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions.

The U.S. dollar rose against the euro in reaction to a political crisis in Greece. The Greek parliament on Monday rejected a new president, triggering early national elections that will now be scheduled for Jan. 25.

Some analysts say that gold may stage a significant rally by early January after working off its overbought condition. The same analysts believe that while short-term volatility is high as volume is low, the precious metal will still trend higher.

Silver for March delivery lost 36.8 cents, or 2.28 percent, to close at 15.779 dollars per ounce. Platinum for April delivery lost 17.2 dollars, or 1.41 percent, to close at 1,202.70 dollars per ounce.