Gold declines more on stronger U.S. equities

Gold futures on the COMEX division of the New York Mercantile Exchange declined further on Wednesday as U.S. equities showed strength.

The most active gold contract for June delivery fell 5.40 U.S. dollars, or 0.44 percent, to settle at 1,223.80 dollars per ounce.

Gold was put under pressure as the U.S. Dow Jones Industrial Average rose by 161 points, or 0.91 percent as of 17:45 GMT.

Because the past four weeks have been a loss for equities, the precious metal had previously been boosted by weaker equities. 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.

The precious metal also shed as the U.S. Dollar Index rose by 0.18 to 95.42 as of 17:45 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 remains under further pressure as the U.S. Department of Commerce released the international trade in goods report on Wednesday showing exports increasing by 1.8 percent during the month of April and imports increasing by 2.3 percent. However analysts noted that the trade balance increasing to negative 57.5 billion U.S. dollars during the month of April, compared to a revised negative 55.6 billion U.S. dollar deficit.

Traders are also waiting for the durable goods and weekly jobless claims on Thursday, and the U.S. gross domestic product report on Friday.

Silver for July delivery added 0.70 cents, or 0.04 percent, to close at 16.261 dollars per ounce. Platinum for July delivery was lower of 9.40 dollars, or 0.94 percent, to close at 994.80 dollars per ounce. Endit