Gold futures on the COMEX Division of the New York Mercantile Exchange touched its lowest level since January 22 on Monday as the safety appeal was reduced by economy recovery anticipation, strong dollar and weak oil. Silver and platinum went down, too.

Gold price for June delivery plunged US$24.50, or 2.7percent, to settle at US$872.80 an ounce. Earlier in the session, it plummeted to 10-week low of US$865. In a three-day slump since last Thursday, gold has dropped more than US$50 an ounce amid hopes the economy recovery is on the way.

Investors are more optimistic to expect the economy to recover in the near future, especially after the G20 summit meeting, said analysts. This apparently weakened gold's appeal as an option to hedge the risk of economic crisis. The safety demand of gold also decreased due to a firm dollar and weak oil.

The dollar rebounded in mid-morning against euro, rising away from a 10-day low of US$1.3577 and touching as high as US$1.3359 for the session. However, Crude oil for May delivery fell more than US$2 per barrel by the end of gold's floor trading time.

Concerns about IMF will sell 403.3 tons gold to help raise US$50 billion for the poorest countries over the next two to three years, also pressured the precious metal although the sale is still to be determined before being put into practice.

May silver finished at US$12.11 per ounce, down 62.5 cents. July platinum dropped US$13.70 to US$1,152.60 per ounce.