Gold and Silver Futures Decline on Outlook for U.S. Dollar

(Bloomberg) -- Gold and silver fell in New York on speculation the dollar will halt its slide against the euro, reducing the appeal of the precious metals as alternative investments.
Gold usually moves in the opposite direction of the dollar, which was little changed against the euro ahead of Federal Reserve Chairman Ben S. Bernanke's semi-annual report on the economy tomorrow. Gold and the euro both have gained 4.4 percent this year.
``We haven't seen more buyers jumping in on a larger scale,'' said Matt Zeman, metals trader at LaSalle Futures Group in Chicago. ``People are on the sidelines waiting for the near- term direction of the dollar. If the euro's rally stalls out, gold can go lower.''
Gold futures for August delivery fell 40 cents to $665.90 an ounce on the Comex division of the New York Mercantile Exchange, after earlier falling to as low as $663.
Silver futures for September delivery fell 4.7 cents, to $13.018 an ounce on the Comex. The price is up 0.6 percent this year.
The euro reached a record $1.3803 on July 17, the highest since its debut in 1999, on speculation interest rates in Europe will rise faster than the U.S.