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1st LD Writethru: Gold down on positive U.S. data

Xinhua, August 19, 2015 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Tuesday as upbeat U.S. housing data buoyed speculation that the Federal Reserve would soon increase the interest rates.

The most active gold contract for December delivery fell 1.5 U. S. dollars, or 0.13 percent, to settle at 1,116.90 dollars per ounce.

The U.S. Commerce Department said on Tuesday that housing starts in July increased 0.2 percent from June to 1.206 million, the highest level since October 2007. Analysts believed that the marked improvement in the property market may sway the timing of an increase in the U.S. interest rate, possibly in September.

As the precious metal bears no interest, a rate hike will drive investors away from gold and toward assets with a return. There has not been an increase in the Fed's interest rate since June 2006.

Gold came under additional pressure as the U.S. dollar index, a measure of the greenback against a basket of major currencies, rose by 0.21 percent to 97.02 as of 18:50 GMT. Gold and the dollar typically move in opposite directions, which means if the greenback goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

Silver for September delivery fell 50.8 cents, or 3.32 percent, to close at 14.79 dollars per ounce. Platinum for October delivery dropped 6.6 dollars, or 0.66 percent, to close at 994.10 dollars per ounce. Endite