Gold down sharply on stronger equities

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Tuesday as a stronger U.S. equities put pressure on the precious metal.

The most active gold contract for August delivery fell 19.60 U.S. dollars, or 1.52 percent, to settle at 1,272.50 dollars per ounce.

The precious metal was put under pressure as the U.S. Dow Jones Industrial Average rose by 37 points, or 0.21 percent as of 17:20 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.

The precious metal was put under further pressure as U.S. Federal Reserve Chairwoman Janet Yellen spoke before the U.S. Senate Banking Commitee in Washington D.C., indicating that she believes a cautious monetary policy remains appropriate. However analysts note that she also said that considerable uncertainty remains on the outlooks, but she does expect the economy and labor market to continue to improve.

Traders are waiting for the release of the weekly jobless claims report and new home sales report on Thursday, and durable goods report on Friday.

Silver for July delivery fell 19.50 cents, or 1.11 percent, to close at 17.319 dollars per ounce. Platinum for July delivery dropped 5.70 dollars, or 0.58 percent, to close at 981.50 dollars per ounce. Enditem