Gold Falls Below $880 for First Time in 2 Months

The correction in the gold market continues, as the ongoing rise of the U.S. dollar and migration toward equities has pummeled the precious metal.

Gold fell as low as $872.90, and at 6.00 p.m. EDT was at $883.50. Since the record high of $1,030.80 two weeks ago, gold has fallen by 15 percent.

"Given the elevated level of speculative interest, we would not rule out a deepening of the current correction in prices," said Suki Cooper, precious metals analyst at Barclays Capital.

"However, the overall environment for gold remains positive over the forthcoming months," she added.

Manufacturing and retail strength in the U.S. helped the dollar gain more than expected.

U.S. gold futures for June delivery finished at $33.70, or $887.80 an ounce on the COMEX division of the NYMEX.