Gold futures contract declined on Thursday after major bullish rally of last two days. Gold saw some pressure due to stronger US dollar. Gold futures contract for December contract fell 0.1 percent or $2.60 to $1,829.10 per ounce on Comex trading of the New York Mercantile Exchange.

Senior market strategist, Adam Klopfenstein from MF Global in Chicago commented, “With strength in the dollar it is hard to paint a positive picture for gold in the short term.” The dollar index DXY which measures the greenback’s movement versus its major six counterparts gained to 74.472 on Thursday as compared to 74.162 on Wednesday’s North American trading session.

Among other precious metals silver futures also declined due to volatility in production. In first six months of 2011 Mexico is reported to produce 1.88 million metric tons as compared to Peru’s production of 1.63 metric tons. Moreover Mexico’s production has also increased by 4.2 percent to 301,637 kilograms for the month of June as compared to prior month.

Silver futures contract for December delivery fell 0.6 percent or $.24 to $41.53 per ounce while copper futures contract for December delivery dropped 1 percent or $0.04 to settle at $4.16 per pound.

Platinum futures contract for October delivery fell 0.2 percent or $3.30 to $1,852.90 per ounce while palladium futures contract for December delivery dropped $0.05 to $790.40 per ounce.