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

Xinhua, November 3, 2015 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Monday as technical trading and positive U.S. data weighed on the precious metal.

The most active gold contract for December delivery fell 5.5 U.S. dollars, or 0.48 percent, to settle at 1,135.90 dollars per ounce.

The precious metal was put under pressure as the Institute for Supply Management said Monday the October PMI registered 50.1 percent, a decrease of from the September reading of 50.2 percent, but above market expectations of 50.0 percent.

Gold was further weighed as the U.S. Department of Commerce said the Purchasing Managers' Manufacturing Index (PMI) rose to 54.1, which is the strongest reading since April 2015.

The positive data is fueling speculation about possibility for the U.S. Federal Reserve to raise its interest rates during the December Federal Open Market Committee meeting.

The CME Group's Fedwatch tool puts the current odds of a rate hike at 47 percent.

An increase in the Fed's interest rate drives investors away from gold and towards assets with a return, as the precious metal bears no interest.

Expectations were originally for a delay in the rate hike until 2016. There has not been an increase in the Fed's interest rate since June 2006, before the beginning of the American financial crisis.

Silver for December delivery fell 15.9 cents, or 1.02 percent, to close at 15.408 dollars per ounce. Platinum for January delivery dropped 10.7 dollars, or 1.08 percent, to close at 978.40 dollars per ounce. Endit