Gold dropped more than 1 percent on Wednesday under the pressure of a strengthened U.S. dollar, marking the lowest settlement since mid-August.
The most active gold contract for December delivery fell 13.9 U.S. dollars, or 1.07 percent, to settle at 1,287.80 dollars per ounce.
The U.S. dollar has extended an upbeat trend, with the key dollar index jumping 0.37 percent to 93.36 as of 1823 GMT. The index is a measure of the dollar against a basket of other major currencies. When the dollar goes up, gold futures will fall.
The greenback continued to rebound amid increased rate hike expectations later this year, following a Tuesday speech by Federal Reserve chair Janet Yellen, who underlined that gradual rate hikes are still appropriate.
Investors also looked ahead to a tax-reform proposal from the Trump administration.
U.S. Commerce Secretary Wilbur Ross has said that the U.S. economy could get a 1-percent boost if tax reform is done right. President Donald Trump is expected to lay out the tax plan during a speech in the state of Indiana.
The Dow Jones Industrial Average remained firm on Wednesday. It rose 17.44 points, or 0.08 percent, to 22,301.76 as of 1833 GMT.
As for other precious metals, silver for December delivery fell 5.6 cents, or 0.33 percent, to close at 16.827 dollars per ounce. Platinum for October dropped 3.2 dollars, or 0.35 percent, to settle at 921.50 dollars per ounce.
The most active gold contract for December delivery fell 13.9 U.S. dollars, or 1.07 percent, to settle at 1,287.80 dollars per ounce.
The U.S. dollar has extended an upbeat trend, with the key dollar index jumping 0.37 percent to 93.36 as of 1823 GMT. The index is a measure of the dollar against a basket of other major currencies. When the dollar goes up, gold futures will fall.
The greenback continued to rebound amid increased rate hike expectations later this year, following a Tuesday speech by Federal Reserve chair Janet Yellen, who underlined that gradual rate hikes are still appropriate.
Investors also looked ahead to a tax-reform proposal from the Trump administration.
U.S. Commerce Secretary Wilbur Ross has said that the U.S. economy could get a 1-percent boost if tax reform is done right. President Donald Trump is expected to lay out the tax plan during a speech in the state of Indiana.
The Dow Jones Industrial Average remained firm on Wednesday. It rose 17.44 points, or 0.08 percent, to 22,301.76 as of 1833 GMT.
As for other precious metals, silver for December delivery fell 5.6 cents, or 0.33 percent, to close at 16.827 dollars per ounce. Platinum for October dropped 3.2 dollars, or 0.35 percent, to settle at 921.50 dollars per ounce.
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