1st LD Writethru: Gold down on stronger U.S. dollar

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday as the U.S. dollar showed strength.

The most active gold contract for April delivery fell 10.7 U.S. dollars, or 0.85 percent, to settle at 1,254.30 dollars per ounce.

The U.S. Dollar Index rose by 0.25 percent to 95.01 as of 18:00 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 U.S. equities were on track for another weekly gain. The U.S. Dow Jones Industrial Average rose by 91 points, or 0.52 percent as of 18:05 GMT. Analysts note 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.

Since the March Federal Open Market Committee (FOMC) meeting, traders believe that the Fed may raise rates from 0.50 to 0.75 during the June meeting. According to the CMEGroup's Fedwatch tool, the current implied probability of a hike from 0.50 to 0.75 is at 9 percent at the April 2016 meeting, and 40 percent at the June 2016 meeting.

Silver for May delivery fell 22.2 cents, or 1.38 percent, to close at 15.811 dollars per ounce. Platinum for April delivery dropped 18.6 dollars, or 1.88 percent, to close at 970.50 dollars per ounce. Enditem