Gold futures on the COMEX division of the New York Mercantile Exchange fell on Wednesday as analysts believe the precious metal was overbought and spent the trading session correcting.
The most active gold contract for April delivery fell 27.4 U.S. dollars, or 1.65 percent, to close at 1,633.4 dollars per ounce.
While technical trading for gold’s overbought condition dominated the day’s session, the precious metal was put under pressure as the Dow Jones Industrial Average rose by 1,166.13 points, or 5.63 percent, to a 21,871.04 level as of 1755 GMT.
Gold was also under pressure as the U.S. Department of Commerce’s Census Department released a better-than-expected durable goods orders report for the month of February on Wednesday, showing strength in the auto sector. The measure showed an increase of 1.2 percent, compared to the previous period’s 0.1 percent gain.
The U.S. Dollar Index fell 0.92 point, or 0.9 percent, to a 101.12 level as of 1750 GMT, offering some support to gold.
Silver for May delivery rose 61.6 cents, or 4.32 percent, to close at 14.873 dollars per ounce. Platinum for April delivery rose 43.8 dollars, or 6.24 percent, to close at 745.5 dollars per ounce. Enditem