Base metals remained under pressure on Wednesday as traders were uncertain over sovereign debt situation of Greece which resulted in weakening of the 17-nations shared currency.

Gold futures contract for June delivery dropped 1 percent or $15.50 to $1,501.40 per ounce on Comex trading session of New York Mercantile Exchange. Silver futures contract for July delivery also declined 7.7 percent or $2.97 to $35.52 per ounce on Wednesday.

The depreciation of single currency resulted in strengthening of the US dollar which ended in bearish sentiments for base metals. Gold and silver often jump up in reaction to declining dollar due to its twin fear of currency devaluation. Now the latest news of restructuring on Greece debts could mean further weakening of the Euro which will boost up the greenback.

The dollar index which measures the US dollar performance against its major six counterpart currencies jumped up to 75.308 on Wednesday as compared to 74.700 on Tuesday’s North American trading session.

However in the start of session base metals investors were optimistic on the news of rising inflation in China. According to the latest data Chinese consumer price index increased to 5.3 percent for the month of April as compared to 5.2 percent last year, but he inflation news could not hold the gains for long.

Copper futures contract for July delivery declined 3.2 percent or $0.13 to $3.91 per pound. Platinum futures contract for July delivery also plunged 1.3 percent or $23.10 to $1,777.80 per ounce while palladium futures contract for June delivery was down 2.4 percent or $17.25 to $715.40 per ounce.