1st LD Writethru: Gold down on stronger dollar

Gold futures on the COMEX division of the New York Mercantile Exchange went down Tuesday as the U.S. dollar strengthened versus the euro in the wake of the worsening Greek debt crisis.

The most active gold contract for August delivery lost 7.2 U.S. dollars, or 0.61 percent, to settle at 1,171.80 dollars per ounce.

Gold was put under pressure as the U.S. Dollar Index rose by 0. 51 percent to 95.47 as of 1750 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

This increase in the price of the U.S. dollar came in the wake of the Greek debt crisis, as investors are looking for a safe haven. Analysts believe, however, that traders are not looking to invest in gold, as the potential for the U.S. Federal Reserve to increase the interest rate is still putting pressure on the precious metal and investors will not want to hold a non-interest- bearing asset if the U.S. interest rate is increased.

Silver for September delivery fell 11.4 cents, or 0.73 percent, to close at 15.581 dollars per ounce. Platinum for October delivery dropped 2.8 dollars, or 0.26 percent, to close at 1,079. 50 dollars per ounce. Endite