Gold down on stronger U.S. dollar

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday as the U.S. dollar strengthened.


The most active gold contract for December delivery fell 8.2 U.S. dollars, or 0.67 percent, to settle at 1,208.70 dollars per ounce.

Gold was put under extensive pressure as the U.S. dollar rose to its highest level since 2003. The U.S. Dollar Index rose by 0.33 percent to 101.28 as of 1745 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.

Gold was prevented from falling further as the U.S. Dow Jones Industrial Average fell by 30 points, or 0.16 percent as of 1745 GMT. Analysts note that when equities post losses, gold usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

The planned Fed speeches by James Bullard, Esther George, and William Dudley made little impact as the market was primarily focused on U.S. Fed Chairwoman Janet Yellen’ s testimony before the U.S. Congress on Thursday. Investors believe the Fed will raise rates from 0.50 to 0.75 during the December FOMC meeting.

According to the CME Group’ s Fedwatch tool, the current implied probability of a hike from 0.50 to at least 0.75 is at 95 percent at the December meeting and 96 percent for the February meeting.

Gold was given minimal support as a report released by the Kansas City Federal Reserve on Friday showed weakness in its manufacturing index, which was measured at a level of 1 during the month of November. However analysts note that new orders are at a 6 level during the month of November, and that inventories dragged down the composite level.

Barring major geopolitical strife, analysts believe the long-term outlook for the precious metal is bearish as strength in the U.S. economy, U.S. equities, and the U.S. dollar has put extensive pressure on gold.

Silver for December delivery dropped 14.8 cents, or 0.88 percent, to close at 16.624 dollars per ounce. Platinum for January delivery fell 23.1 dollars, or 2.44 percent, to close at 920.60 dollars per ounce. Enditem

Source: Xinhua/

Send your news stories to and via WhatsApp on +233 244244807 Follow News Ghana on Google News


Please enter your comment!
Please enter your name here