Gold futures on the COMEX division of the New York Mercantile Exchange on Tuesday fell as the U.S. dollar showed strength. The most active gold contract for February delivery lost 0.3 U. S. dollar, or 0.03 percent, to settle at 1,068.00 dollars per ounce.
The U.S. Dollar Index fell by 0.18 to 98.12 as of 1900 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.
The precious metal was put under pressure as a better-than-expected report released by the New York-based Conference Board, which measures consumer confidence, found that its key index rose to a reading of 96.5 during December, comparing the reading of 92.6 in November.
The precious metal's price was put under further pressure as British FTSE 100 increased and the benchmark DAX index at Frankfurt Stock Exchange rebounded sharply, while the U.S. stocks also traded higher around midday Tuesday. The long-term trend for gold remains strongly bearish according to analysts as the Fed hiked its interest rate in December, which came despite expectations for a delay in the rate hike until 2016. An increase in the Fed's interest rate drives investors away from gold and towards assets with a return, as the precious metal bears no interest.
Silver for March delivery rose 4.4 cents, or 0.32 percent, to close at 13.928 dollars per ounce. Platinum for January delivery added 10.4 dollars, or 1.18 percent, to close at 891.20 dollars per ounce.
Latest comments