1st LD Writethru: Gold down on stronger U.S. dollar, weak oil
Xinhua, February 24, 2015 Adjust font size:
Gold futures on the COMEX division of the New York Mercantile Exchange fell Monday as the U. S. dollar strengthened and oil prices went down.
The most active gold contract for April delivery lost 4.1 U.S. dollars, or 0.34 percent, to settle at 1,200.80 dollars per ounce.
Gold was put under pressure as the Dollar Index rose by 0.22 percent to 94.51 Monday. 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, prices of gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.
A steep drop in the price of oil also put additional pressure on gold. WTI Crude Oil fell by 2.89 percent to 49.34 Monday as Libya opened a new pipeline, ensuring continued adequate supply for the world.
The precious metal was given a slight boost as a report from the U.S.-based National Association of Realtors on Monday showed existing home sales dropped a worse-than-expected 4.9 percent in January to an annual rate of 4.82 million. Analysts say this is the lowest rate of sales since April 2014.
Silver for March delivery fell 1.9 cents, or 0.12 percent, to close at 16.254 dollars per ounce. Platinum for April delivery dropped 6.6 dollars, or 0.56 percent, to close at 1,162.90 dollars per ounce. Endite