Gold futures on the COMEX division of the New York Mercantile Exchange fell on Monday as the U. S. dollar showed extensive strength.
The most active gold contract for December delivery fell 2.6 U. S. dollars, or 0.21 percent, to settle at 1,221.70 dollars per ounce.
The U. S. dollar rose unexpectedly sharply on Monday, hitting an 11-month high. Many investors believe that U.S. President-elect Donald Trump will have a positive impact on banking regulations and the strength of banking equities gave support to the U.S. dollar.
The U. S. Dollar Index rose by 0.86 percent to 100.07 as of 1840 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.
U. S. equities also rose, as the U.S. Dow Jones Industrial Average added 11 points, or 0.06 percent as of 1845 GMT. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.
Analysts note that while there was very little news on Monday other than the U. S. dollar strength, a large quantity of economic reports are due later this week.
The retail sales report is due Tuesday, producer price index and industrial production reports are due Wednesday, the consumer price index, housing starts, weekly jobless claims, Philadelphia Federal Reserve Business Outlook Survey are due on Thursday, and finally several Federal Reserve officials are scheduled to speak on Friday.
Silver for December delivery dropped 48.9 cents, or 2.81 percent, to close at 16.893 dollars per ounce. Platinum for January delivery dropped 9.6 dollars, or 1.02 percent, to close at 933.60 dollars per ounce. Enditem
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(Via: NewsGhana)
