SAN FRANCISCO (MarketWatch) — Gold prices extended losses Friday, more than erasing the prior session’s gains as market sentiment was dented by delays on Greece’s second bailout and the metal failed to catch safe-haven bids.

A stronger dollar also pressured gold and other metals. Investors discounted the move by gold’s main U.S. exchange operator to cut futures margin requirements on gold and other futures.

Gold futures for delivery in April (XCEC:GC2J) dropped $24.70, or 1.5%, to $1,716.60 an ounce on the Comex division of New York Mercantile Exchange. Gold had advanced $9.90, or 0.6%, in the previous floor session.

Most markets traded sharply lower, including commodities such as oil, and U.S. stocks.

Markets reacted poorly to news a final approval of a second Greek bailout, necessary to avoid a messy default, is delayed until next week as euro-zone finance ministers demanded the country’s parliament first approve another round of deep cutbacks. Read more on Greece.

The U.S. dollar rose against the euro, further weighing on commodities. The dollar index (IFUS:DX-Y.NYB), a measure of the greenback’s performance against six major global currencies, advanced to 70.042 from 78.582 late Thursday, with the euro (ICAP.C:EURUSD) and the British pound (ICAP.C:GBPUSD) both moving lower.

At the end of regular trading Thursday, CME Group said it would reduce the amount of collateral that traders must provide to trade commodities including gold, copper and crude oil. The margin required to open a position in gold futures was cut 12% to $10,125. Read more about the CME’s margin adjustments.

The drop in gold also came as China’s trade surplus for January widened more than expected because of a sharp decrease in imports. Read more about China’s January trade data.

Elsewhere in the metals complex, March silver (XCEC:SI2H) dropped 42 cents, or 1.2%, to trade at $33.46 an ounce.

March copper (XCEC:HG2H) declined 10 cents, or 2.6%, to $3.88 per pound.

Platinum and palladium also traded lower, with April platinum (XNYM:PL2J)down $21.10, or 1.3%, to $1,646.50 an ounce. March palladium (XNYM:PA2H).was off $10.05, or 1.5%, to $701.25 an ounce.