Equityworld Future-Gold futures on the COMEX division of the New York Mercantile Exchange fell on Tuesday (Wednesday morning GMT), as one of the means of measurement, the US dollar, could be in the range of new 52-week highs amid positive US economic data.
The most active gold contract for February delivery fell three dollars, or 0.25 percent, to settle at 1190.80 dollars per ounce. The precious metal is put under extensive pressure, since the US Commerce Department released a report on gross domestic product (GDP) on Tuesday which showed growth of 3.2 percent during the third quarter of 2016.
Equityworld Futures : EXCHANGE RUPIAHS 30 NOVEMBER Opened Gains 42 points to 13 518
Analysts noted that figure is at the high end of consensus and give encouragement to investors who continue to expect interest rate hikes by the US central bank in December. Investors believe the Fed will raise interest rates from 0.50 to 0.75 during the December FOMC meeting.
According Fedwatch tool CME Group, the implied probability at this time to raise interest rates from 0.50 to 0.75 is at least 96 percent at a meeting in December and 95 percent at the February meeting. Gold is under further pressure as the dollar spent most of the day near 52-week highs, a major technical barrier that reduces demand for “safe haven” for precious metals.
At the end of the trading day, the US dollar index fell 0.18 percent to 100.98 at 19:45 GMT, but strengthening in most of the long day ahead of the trade exceeds the market close. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar usually move in opposite directions, which means that if the dollar will rise, gold futures fell, because gold is measured in dollars more expensive for investors.
Silver for March delivery added 6.5 cents, or 0.39 percent, to close at 16.74 dollars per ounce. Platinum for January delivery fell two dollars, or 0.22 percent, to close at 921.30 dollars per ounce.