Gold Slips Below $1,200, at Daily Low, as U.S. Dollar Index Hits 11.5-Year High

London (Mar 4)  Gold is seeing moderate selling pressure and has dropped below the psychologically important $1,200.00 level in late-morning dealings Wednesday. The precious metal moved to its session low as the U.S. dollar index touched an 11.5-year high. The strong greenback continues to be a bearish underlying factor for the entire raw commodity sector, including gold and silver. April Comex gold was last down $5.70 at $1,198.70.

Spot silver also slips 13 cents to $6.21 on lackluster volume, while palladium rises $1 to $828 - near a five month high.