ZCZC
BCN-21
US-GOLD-MARKET-COMEX
Gold falls as U.S. dollar, equities rise
CHICAGO, July 18, 2018 (BSS/Xinhua) – Gold futures on the COMEX division
of the New York Mercantile Exchange continued to fall on Tuesday amid a
strengthening U.S. dollar and rising equities.
The most active gold contract for August delivery went down 12.4 dollars,
or 1.00 percent, to close at 1,227.30 dollars per ounce, the lowest level
sine July 13, 2017.
Federal Reserve Chairman Jerome Powell’s upbeat remarks about U.S. economy
and projection of gradual hikes in key interest rates boosted the dollar.
The U.S. dollar index, a gauge of the dollar against a basket of other
major currencies, rose by 0.42 percent to 94.67 as of 1605 GMT.
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 using other currencies.
Meanwhile, the Dow Jones Industrial Average, S&P 500 and Nasdaq all went
up, further pressuring the gold futures.
When equities post gains, the precious metal usually goes down, as
investors are not necessarily looking for a safe haven.
As for other precious metals, silver for September delivery went down 19.5
cents, or 1.23 percent, to close at 15.617 dollars per ounce. Platinum for
October was down 6.5 dollars, or 0.79 percent, to settle at 819.90 dollars
per ounce.
BSS/XINHUA/HR/1245