Gold futures on the COMEX division of the New York Mercantile Exchange declined by more than one percent on Tuesday under the pressure of a strengthened U.S. dollar.
The most active gold contract for December delivery fell 16.8 dollars, or 1.29 percent, to settle at 1286.20 dollars per ounce.
It's the biggest one-day drop in nearly four weeks and the precious metal was again below 1,300 U.S. dollar following a brief rally above the threshold.
The U.S. dollar index rose 0.39 percent to 93.63 Tuesday as of 1723 GMT. Gold and the U.S. dollar typically move inversely. When the dollar goes up, gold which is priced in greenbacks becomes less attractive to investors using another currency.
The rally of U.S. dollar was partially caused by speculation over who could be the next Federal Reserve chairperson. It's recently reported that Stanford economist John Taylor impressed President Donald Trump in a recent interview for the position.
Taylor has been considered to be a "hawkish" candidate who believes the current FED rates -- set at a range of 1 to 1.25 percent -- are too low.
Gold got additional pressure from the news that annual inflation in Britain accelerated to three percent in September, which led to talks that Bank of England might lift its key interest rate by a quarter percentage point in November.
As for other precious metals on Tuesday, silver for December delivery fell 32.8 cents, or 1.89 percent, to close at 17.041 dollars per ounce. Platinum for next January went down 0.77 percent to settle at 934.80 dollars per ounce.
The most active gold contract for December delivery fell 16.8 dollars, or 1.29 percent, to settle at 1286.20 dollars per ounce.
It's the biggest one-day drop in nearly four weeks and the precious metal was again below 1,300 U.S. dollar following a brief rally above the threshold.
The U.S. dollar index rose 0.39 percent to 93.63 Tuesday as of 1723 GMT. Gold and the U.S. dollar typically move inversely. When the dollar goes up, gold which is priced in greenbacks becomes less attractive to investors using another currency.
The rally of U.S. dollar was partially caused by speculation over who could be the next Federal Reserve chairperson. It's recently reported that Stanford economist John Taylor impressed President Donald Trump in a recent interview for the position.
Taylor has been considered to be a "hawkish" candidate who believes the current FED rates -- set at a range of 1 to 1.25 percent -- are too low.
Gold got additional pressure from the news that annual inflation in Britain accelerated to three percent in September, which led to talks that Bank of England might lift its key interest rate by a quarter percentage point in November.
As for other precious metals on Tuesday, silver for December delivery fell 32.8 cents, or 1.89 percent, to close at 17.041 dollars per ounce. Platinum for next January went down 0.77 percent to settle at 934.80 dollars per ounce.
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