1st LD Writethru: Gold down on stronger U.S. equities
Xinhua, January 15, 2016 Adjust font size:
Gold futures on the COMEX division of the New York Mercantile Exchange fell on Thursday as the U.S. Dollar and U.S. equities showed strength despite weaker U.S. data.
The most active gold contract for February delivery fell 13.5 U.S. dollars, or 1.24 percent, to settle at 1,073.60 dollars per ounce.
The U.S. Dollar Index rose by 0.19 percent to 99.08 as of 19:00 GMT. 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, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.
Gold was put under further pressure as the U.S. Dow Jones Industrial Average rose by 1.87 percent on Thursday. Analysts noted that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.
A report released by the U.S. Department of Labor showed initial jobless claims rising by 7,000 to 284,000 during week of Jan. 9.
Silver for March delivery fell 40.8 cents, or 2.88 percent, to close at 13.748 dollars per ounce. Platinum for April delivery dropped 16.5 dollars, or 1.94 percent, to close at 834.80 dollars per ounce. Endit