Gold futures on the COMEX Division of the New York Mercantile Exchange dropped for the second straight session and closed at another three-week low on Monday as dollar sharply went up. Silver and platinum finished much lower, too.

Gold price for August delivery lost 13.20 U.S. dollars, or 1.4 percent, finishing at 927.50 dollars an ounce, the lowest level since May 19.

Finance ministers from the Group of Eight industrialized nations met last Friday and Saturday. Russian Finance Minister Alexei Kudrin indicated that the dollar's role as the main reserve currency was unlikely to change in the near future. These comments boosted the dollar to surge quickly on Monday.

The rate against euro gained more than 2 cents and reached a four-week high of 1.3754 dollars. Gold's appeal of hedging dollar' s depreciation was greatly reduced.

The crude oil prices in New York retreated from its 8-month high as the benchmark contract of July delivery lost almost 2 dollars by the end of gold floor trading time, further pushing the precious metal down.

According to a report released by the National Association of Home Builders, the U.S. housing market index slipped by one point to 15 in June, the first decline since January when the index dropped to an all-time low of 8. This reflected many builders' uncertainty about when their business prospects might improve. Index readings lower than 50 indicate negative sentiment about the housing market.

July silver finished at 14.03 dollars per ounce, down 84.5 cents. July platinum lost 45 dollars to 1,213.70 dollars an ounce.