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Gold down on positive U.S. data, Yellen comments

Xinhua, June 23, 2016 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Wednesday as positive U.S. data and encouraging comments from the Fed chair put pressure on the precious metal.

The most active gold contract for August delivery fell 2.50 U.S. dollars, or 0.20 percent, to settle at 1,270.00 dollars per ounce.

The precious metal was put under pressure as U.S. Federal Reserve Chairwoman Janet Yellen gave better-than-expected testimony to the U.S. House Financial Services Committee.

Yellen said she believed that the labor market remains in a healthy condition and continues to improve, particularly in the area of wage growth. She also noted that small businesses are able to gain access to credit, and that the access to credit is growing at a healthy pace.

Gold was put under further pressure as a report released by the National Association of Realtors showed existing home sales increasing by 1.80 percent to an annualized rate of 5.53 million during the month of May.

Analysts noted that this is the highest reading of this measure since 2007, and is a positive sign for the housing market.

Weakness in U.S. equities also gave support to the precious metal as the U.S. Dow Jones Industrial Average fell by 40.82 points, or 0.23 percent, as of 1745 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.

However, weakness in the U.S. dollar gave some support to the precious metal as the U.S. Dollar Index fell on Wednesday.

Investors were also counting down the hours to Britain's referendum, which is scheduled to begin Thursday morning. The latest polls showed the "Leave" camp was tied with the "Remain" camp in the referendum.

Silver for July delivery fell 0.70 cents, or 0.04 percent, to close at 17.312 dollars per ounce. Platinum for July delivery added 2 dollars, or 0.20 percent, to close at 983.50 dollars per ounce. Endit