US gold futures turn to end up as dollar steadies

NEW YORK, May 21 (Reuters) - U.S. gold futures erased early losses to finish up slightly on Monday as the dollar rose at a steady rate, but a higher greenback and long liquidation could continue to put pressure on the precious metal, dealers said.
Most-active gold for June delivery on the COMEX division of the New York Mercantile Exchange settled up $1.80 at $663.80 an ounce, after trading between $657.50 and $664.60.
Neal Ryan, director of economic research at Blanchard & Co., said in a note that a steady dollar and some physical buying helped prices on Monday.
"Precious metals are making a strong reversal heading into the afternoon, underscoring that the sharp sell off last week was overdone," Ryan said. The dollar hit a five-week high against the euro and a three-month peak versus the yen on Monday. A higher dollar makes gold more expensive for holders of other currencies.